(10/04/23) Looking to Improve Your Results? Here are 50 Laws for Better Inv

As an investor you should always keep improving. Here are my 50 laws to become a better investor, writes CQ, editor of Compounding Quality.

Common sense is not so common
Greed often overcomes common sense
Greed kills
Fear and greed are stronger than long-term resolve
There is no vaccine for being overleveraged
When you combine ignorance and leverage, you usually get some pretty scary results
Operate only in your area of competence
There is always more than one cockroach in the kitchen
Over long periods of time, equities will rise in value
Long investing generates wealth
Short selling can protect wealth
Be patient and learn how to sit on your hands
Try to get a little smarter every day and read as much as possible
Investors often think too little and calculate too much
Security Analysis by Benjamin Graham is the most important book ever. Read and reread it
History is a great teacher
History rhymes
What we have learned from history is that we haven't learned from history
Investment wisdom is always 20/20 when seen in the rear-view mirror
Avoid first-level thinking. Embrace second-level thinking
Think for yourself
In investing, that which is profitable is most often not exceedingly profitable at the end
Avoid herd behavior
The more often stupidity is repeated, the more it gets the appearance of wisdom
Always have more questions than answers
You must have accounting and finance knowledge, work hard, and be very competitive to be a successful investor
The stock market is full of individuals who know the price of everything and the value of nothing
Directional call buying, when consumed as a steady appetite, is a mug's game and often a path to the poorhouse
Never buy the stock of a company whose CEO loves expensive toys
Avoid "The Noise"
Reversion to the mean is a strong market influence
On markets and individual equities: "When you reach success station, get off!
Try to buy stocks at cheap valuation levels
Being right or wrong is less important than how much you make when you're right and how much you lose when you're wrong
Too much of a good thing can be wonderful
New paradigms are a rare occurrence
Price goes before the fall
Consider opposing investment views and cultivate curiosity
Maintain a healthy level of skepticism
In investing, nothing is certain
Always control your emotions
"Rate of change"' is the most important statistic in investing
In evaluating the attractiveness of a stock, always consider upside reward versus downside risk
Always stick to your investing strategy
Know what you own
Immediately sell a stock on the announcement of an accounting irregularity
Always follow the cash(flow)
Replace the word EBITDA with BS earnings
Favor doing stock research over spending time on sites like r/wallstreetbets
Find a good mentor and pay attention to what they're doing