It only takes a handful of big winners to make a lifetime of investing worthwhile.
Know what you own, and know why you own it.
Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets.
The list of qualities (an investor should have) include patience, self-reliance, common sense, a tolerance for pain, open-mindedness, detachment, persistence, humility, flexibility, a willingness to do independent research, an equal willingness to admit mistakes, and the ability to ignore general panic.
You only need a few good stocks in your lifetime. I mean how many times do you need a stock to go up ten-fold to make a lot of money? Not a lot.
Everyone has the brain power to make money in stocks. Not everyone has the stomach.
When stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom.
Never invest in any idea you can't illustrate with a crayon
Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.
Although it's easy to forget sometimes, a share is not a lottery ticket... it's part-ownership of a business.
Last Update: 1 October 2022
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