If you begin with a prayer, you can think clearly and make fewer mistakes.
Outperforming the market is a diffi cult task. The challenge is not simply making better investment decisions than the average investor. The real challenge is in making investment decisions that are better than those of the professionals who manage the big institutions.
Invest â€“ donâ€™t trade or speculate. The stock market is not a casino, but if you move in or out of stocks every time they move a point or two…the market will be your casino. andâ€¦you may lose eventually â€“ or frequently.
Buy value, not market trends or the economic outlook. Ultimately, it is the individual stocks that determine the market, not vice versa. Individual stocks can rise in a bear market and fall in a bull market. So, buy individual stocks, not the market trend or economic outlook.
When buying stocks, search for bargain among quality stocks. Determining quality in a stock is like reviewing a restaurant. You donâ€™t expect it to be 100% perfect, but before it gets three or four stars, you want it to be superior.