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4.

4.

In the beginning, focus the vast majority of your effort on boosting your income & savings rate

48

401 reads

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7.

7.

If you rarely sell, your portfolio will concentrate itself

45

343 reads

6.

6.

The P/E ratio is only useful when a company is fully optimized for profits (stage 4)

It's most deceiving in stages 3 & 5

49

366 reads

10.

10.

"Do nothing" is almost always the right move.

47

342 reads

1.

1.

Stock prices & business profits are not at all linked in the short-term, but they are 100% linked in the long-term

Watch the business, not the stock

48

639 reads

5.

5.

Analysis paralysis is real

Once you know enough, decide.

54

390 reads

9.

9.

Stop-loss orders should really be called Stop-Compounding Orders

45

334 reads

3.

3.

Compounding pays off the most in the out-years

Optimize for longevity first, everything else second

45

430 reads

8.

8.

Invest with CEOs that under-promise and over-deliver

Avoid CEOs that do the inverse

48

338 reads

2.

2.

It's a FAR bigger mistake to sell a mega-winner early than it is to hold a mega-loser too long.

47

581 reads

CURATED FROM

CURATED BY

ashish7

Dreamer ☀️

I've been investing for 18+ years I've made TONS of mistakes along the way here are 10 critical investing lessons I wish I could teach my younger self:

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Savings = Income - Expenditure, i.e. increase your income & decrease your expenditure to increase savings.

Follow budgeting principle:  

  • Needs: 50% of Total Income,
  • Wants: 30% of Total Income,
  • Savings: 20% of Total Income.

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While frugality is undoubtedly important in personal finance, boosting your savings can also be done by earning more money.

Whether you're self-employed or working for somebody else, your income is determined by three factors.

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  • ...

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