What is the golden rule of stock investing?
RULE #1: THINK LONG-TERM
Warren Buffet's first rule of investing is to never lose money; his second is to never forget the first rule. This golden rule is key for long-term capital protection and growth. One oft-used strategy to limit losses in turbulent markets is an allocation to gold.
Another important rule of trading is always picking the right stock that has sufficient liquidity and trading volume in the market. If you pick the illiquid stock, it will not move as per your expectations and you will also find it difficult to sell or exit from the position within your time frame.
Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule. And that's all the rules there are.”
Take informed decision
Whether you decide to invest, sell or hold - always make sure that you know why you are taking the decision. Conduct proper research to ensure that your decisions are reasonable. Your investment decisions must be data-driven and not sentiment- or reputation-driven.
“Do unto others as you would have them do unto you.” This seems the most familiar version of the golden rule, highlighting its helpful and proactive gold standard.
The “Golden Rule”—“Love your neighbor as yourself”—is doubtless the most widely known and affirmed ethical principle worldwide. At the same time, it has its serious, quasi-serious, and jocund critics.
A golden share is a type of share that gives its shareholder veto power over changes to the company's charter. One golden share controls at least 51% of voting rights and may be issued by private companies or government enterprises.
Key Takeaways
The 90/10 strategy calls for allocating 90% of your investment capital to low-cost S&P 500 index funds and the remaining 10% to short-term government bonds. Warren Buffett described the strategy in a 2013 letter to his company's shareholders.
A Golden Cross is a basic technical indicator that occurs in the market when a short-term moving average (50-day) of an asset rises above a long-term moving average (200-day). When traders see a Golden Cross occur, they view this chart pattern as indicative of a strong bull market.
What will never lose value?
Things that don't depreciate in value are things that don't lose their qualities as time passes or things that actually increase in value with the passage of time. These include goodwill, luxurious items, high-quality art, gems, alcoholic beverages, and land.
- Neglecting Personal Development. ...
- Relying On Credit Cards. ...
- Frequenting Bars and Pubs. ...
- Chasing the Latest Technology. ...
- Overspending on Clothes. ...
- Buying New Cars. ...
- Unused Gym Memberships. ...
- Unnecessary Subscription Services.
- Never lose money. ...
- Never invest in businesses you cannot understand. ...
- Our favorite holding period is forever. ...
- Never invest with borrowed money. ...
- Be fearful when others are greedy.
- Invest within your circle of competence.
- Think like a business owner when buying equities.
- Buy at inexpensive prices to provide a margin of safety.
Specifically, a fund is prohibited from: acquiring more than 3% of a registered investment company's shares (the “3% Limit”); investing more than 5% of its assets in a single registered investment company (the “5% Limit”); or. investing more than 10% of its assets in registered investment companies (the “10% Limit”).
Rule 1: Always Use a Trading Plan
A trading plan is a set of rules that specifies a trader's entry, exit, and money management criteria for every purchase. With today's technology, test a trading idea before risking real money.
- Debit the receiver, credit the giver.
- Debit what comes in, credit what goes out.
- Debit expenses and losses, credit incomes and gains.
New Testament accounts
"Teacher, which commandment in the law is the greatest?" He said to him, "'You shall love the Lord your God with all your heart, and with all your soul, and with all your mind. ' This is the greatest and first commandment.
By making assumptions about others. The Golden Rule assumes that you are the expert – “my way is the highway” – on how others would like to be treated in the workplace. “I am the one with the gold and because of that, I know best.” It fosters an atmosphere of distrust and can further the divide between generations.
Gold is often considered a good investment for diversification, as it may be less correlated with other assets such as stocks or bonds.
Is it better to invest in gold or stocks?
Gold has long been considered a durable store of value and a hedge against inflation. Over the long run, however, both stocks and bonds have outperformed the price increase in gold on average. Nevertheless, over certain shorter time spans, gold may come out ahead.
Investing in gold can be tricky, but one of the best ways to gain exposure to gold is through the S&P Gold Shares ETF (GLD). Gold provides a natural hedge against inflation and is regarded as a safe-haven investment during downturns in the economy. Many investors believe gold still has a place in long-term portfolios.
Warren Buffet's 2013 letter explains the 90/10 rule—put 90% of assets in S&P 500 index funds and the other 10% in short-term government bonds.
The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double.
What Is a 70/30 Portfolio? A 70/30 portfolio is an investment portfolio where 70% of investment capital is allocated to stocks and 30% to fixed-income securities, primarily bonds.
