- Circle of Competence: Invest within your 'Circle of Competence' or the areas where you have an expertise and thus have an edge over the others. Don't invest in something you don't understand.
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Margin of Safety: Invest where there is significant downside protection in case things turn south. This is usually true if you invest at lower valuations.
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Quality of Business: Buy wonderful businesses at fair price rather than buying fair businesses at wonderful prices. This means don't compromise on the business quality even if the business is available very cheaply.
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Never Lose Money: Don't invest in places which can blow up your capital. If you invest in a wrong business, cut your loss and move on.
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Temperament, not Intellect: In investing, you don't need a very high IQ to be successful. All you need is a temparament to control your urge to sell during market drawdowns.
DISCLAIMER: This blog is solely for educational purposes and not to offer any investment advice. Please do your own research or consult a financial advisor before making any investment decisions.
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