Investing rules – Maximise money per hour of research
-Read books from successful investors.
Stop watching TV News Channels.
Nobody knows the future, so stop asking.
Money is only one of the types of Wealth.
Crazy people of like nature enforce yet conceal each others’ craziness. Find your craziness and tone it to saner proportions.
Mean reversion is an enduring truth of market.
Average common man will buy more in peaks and less in trough.
Excesses in under and over valuation is an enduring theme.
Find High Growth Companies in Low Growth Industries.
Stop Finding companies in High Growth Industries.
Find out the type of investor you are, someone who buys on borrowed tips of one who researches on their own.
Find market leaders in small niches, not #3 or #4 players selling cheap.
Thinking in 3-5 year time frames and not 3-4 months / quarters.
Understand the business, competitive forces and ability to predict future of the business.
Stop thinking solely in PE terms.
Stop playing greater fool game.
Bet on four stocks at a minimum, don’t over concentrate, don’t over diversify.
Think independently. You will outperform the majority.
When there is no company worth investing in the country, go all cash, to go out of the country.
Get rich slow-but-sure, don’t buy lotto, don’t play in casino, don’t gamble, don’t leverage.
Maximise money per hour of research, no point buying into a position requiring active monitoring. The person who makes 100 million from stock market by investing 1 hour per day wins over the person who makes 100 million by investing 6 hours a day. Time is finite and limited. Learning and knowledge is infinite.
Make money and stock market both your slave, make money and forget about them.
Never retire, work incessantly.
Money is means and not an end. Money is a slave to free you from your daily routine.
Show you have the creative potential and do something that nobody has ever done.
Have more creative ambitions in life than earning billions, you are more than your body (thankfully) that needs to be fed on money supplied goods and services alone and very soon you will enter a dimension where money will not work. How soon ? Likely before 2500 weekends.
Gradually drift into a field which you are passionate about, otherwise you are a big disservice to yourself and the society in a profession that is not your passion.
Buy damaged stocks, not beaten down companies.
Learn from own and others’ mistakes.
Explain your picks to yourself with four convincing reasons.