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Investing Philosophy

Stay in the game

01 Aug 2022

Do not be wiped out

stay in the game purple cover

For you to reap the long-term rewards of investing, you will need to stay in the game. 

This means not doing things that will cause you to be wiped out. 

And this is where I would urge beginner investors not to be too funky in what you invest in, especially if you do not know what you are getting yourself into.   

Take on a margin loan to buy stocks? I would think twice (and thrice).

Trade with options? Leave it to the experts.  

Put all my life savings into a single investment? Maybe not. 

And of course underlying all these financial decisions, is a commitment you must make to take care of yourself. 

Guard your health like you would protect a car that you would have to use for 80 or 90 years (and maybe even longer).  

And this is where I would remember the wise words of Charlie Munger, also known by many as Warren Buffett’s long-time partner in investing. 

“All I want to know is where I’m going to die so I’ll never go there.”

Take the next step

Make a plan and stick to it. As a start, do the following: get your finances in order, know your time horizon, and review your strategy regularly.