• Think on the long term
• The magic of compounding
• Always stay invested
• Dollar-cost average
• Invest in what you understand
• Volatility is your friend
• Buy beautiful businesses
I'll show you step by step:
• Think on the long term
In the short term the market is a voting machine while in the long term it's a weighing machine.
In the long term, stocks generate the highest return of all asset classes.
• The magic of compounding
Compounding is the eighth wonder of the world.
If you invest $500 per month for 40 years, you'll have more than $3 million.
• Warren Buffett
• Peter Lynch
• Terry Smith
• Joel Greenblatt
• Benjamin Graham
• Li Lu
• John Templeton
• Mohnish Pabrai
• Jack Bogle
• Rakesh Jhunjhunwala
• Charlie Munger
1 important lesson from each:
Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.
- Warren Buffett
If you invest $1,000 in a stock, all you can lose is $1,000, but you stand to gain $10,000 or even $50,000 over time if you're patient.