Consider the following 15 rules while you are starting to Invest…
- Take advantage of what you already know
- Look for opportunities that haven’t yet been discovered and certified by Dalal Street [Wall Street] – companies that are “off the radar scope”
- Invest in a house before you invest in a stock
- Invest in companies, not in the stock market
- Ignore short-term fluctuations
- Large profits can be made in common stocks
- Large losses can be made in common stocks
- Predicting the economy is futile
- Predicting the short-term direction of the stock market is futile
- The long-term returns from stocks are both relatively predictable & also far superior to the long-term returns from bonds
- Keeping up with a company in which you own stock is like playing an endless game
- Common stocks aren’t for everyone, nor even for all phases of a person’s life.
- The average person is exposed to interesting local companies and products years before the professionals.
- Having an edge will help you make money in stocks.
- In the stock market, one in the hand is worth ten in the bush
Courtesy: Peter Lynch
Book: One Up on Wall Street – (Must Read for all investors)
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