50 Investing Rules Everyone Should Know

Some rules for investing never get old. Here’s a list of 50 to guide your journey:

  1. If the reason you bought a stock no longer applies, sell it.
  2. Don’t blame the market for your mistakes.
  3. If you’re on the wrong train, get off before it costs you more.
  4. The stock market isn’t like horse racing—someone always wins in horse racing.
  5. Predicting a storm doesn’t matter if you’re not building an ark.
  6. Hot sectors lead to new funds, not for your benefit but because they’re easy to sell.
  7. If you don’t own stocks during downturns, you won’t own them when they soar.
  8. Hype stocks are a tax on people who don’t understand fundamentals.
  9. The market isn’t always efficient, but it’s still hard to beat.
  10. Don’t trade all the time.
  11. Leave your opinions out of your strategy.
  12. Only invest money you can afford to lose.
  13. Knowledge comes from experience, not just information.
  14. Hands-off portfolios often perform better.
  15. Cash isn’t trash—it’s an option for future opportunities.
  16. Crowds are often wrong in the short term but right in the long term.
  17. Dividends indicate value—profitable companies can pay them.
  18. Expose your portfolio to opportunities, not unnecessary risks.
  19. Avoid leveraged companies; instead, use leverage on solid ones.
  20. Optimists and pessimists don’t win—realists do.
  21. Simple models often work best.
  22. Popular stocks often fall; ignored ones can rise.
  23. Investing is about probabilities, not certainties.
  24. More stocks double in value than go to zero.
  25. Be bullish in a bull market.
  26. Be wary of stocks with names like “Universal” or “Global.”
  27. Economists rarely agree on anything.
  28. Betting on the next big thing isn’t investing—it’s gambling.
  29. We’ve faced scary news before and survived.
  30. Plan for likely outcomes and set realistic expectations.
  31. Study market history to understand possibilities.
  32. Economists love numbers, but they lack the flair of accountants.
  33. You’ll never have all the answers.
  34. Investing should feel boring; seek excitement elsewhere.
  35. Don’t wait to time the bottom—buy when there’s value.
  36. Watch for growth initiatives in companies.
  37. Time is an asset in investing—play the long game.
  38. Dull company names often hide great opportunities.
  39. Most market predictions are wrong at turning points.
  40. People forget to buy back after selling at a high.
  41. Falling markets often mean higher future gains.
  42. Invest in companies with irreplaceable products or services.
  43. Good businesses don’t rely on heavy borrowing.
  44. Time reveals what daily fluctuations can’t.
  45. A good outcome doesn’t always mean a good decision.
  46. The more data points you gather, the better your decisions.
  47. Investors often create theories to explain trends.
  48. A strong competitive advantage matters more than price.
  49. Find great businesses at fair prices, not mediocre ones on sale.
  50. Time is your biggest behavioral advantage in investing.

:clinking_glasses:

This is fantastic. Perfect timing for this post!

Zeek said:
This is fantastic. Perfect timing for this post!

:handshake:

Valentine said:

Zeek said:
This is fantastic. Perfect timing for this post!

:handshake:

Which 5 or 6 rules do you lean on the most when you’re uncertain about investing?

Zeek said:

Valentine said:
Zeek said:
This is fantastic. Perfect timing for this post!

:handshake:

Which 5 or 6 rules do you lean on the most when you’re uncertain about investing?

Here are mine:

4 (focus on the portfolio as a whole, not just individual stocks),
36 (earnings call transcripts are gold),
50 (Wall Street focuses on the next quarter—I focus on time),
43 (rising interest rates? Not a big issue for unleveraged businesses),
30 (be roughly right, not obsessed with specifics).

@Valentine
Thanks! That’s a solid mindset.

Zeek said:
This is fantastic. Perfect timing for this post!

Completely agree. Great stuff!

Thanks for this. I’ll be bookmarking it to revisit every now and then.

Ozzy said:
Thanks for this. I’ll be bookmarking it to revisit every now and then.

:+1:

Love this! The parts about avoiding hype and keeping things simple really hit home. Timeless advice.

Farrell said:
Love this! The parts about avoiding hype and keeping things simple really hit home. Timeless advice.

:handshake:

I just started investing with Trade Republic, and this advice feels so practical and down to earth. Thanks for sharing!

Skyler said:
I just started investing with Trade Republic, and this advice feels so practical and down to earth. Thanks for sharing!

:clinking_glasses:

Where is this list from? Did you create it or compile it?

Uma said:
Where is this list from? Did you create it or compile it?

It’s a mix of my own insights and notes I’ve taken from investment books over the years.

Can you explain #15 and #22 in the context of NVDA?

  1. Cash is not trash—it’s an option on finding value later.
  2. When everyone likes a stock, it must go down; when no one likes a stock, it might go up.
  1. Time arbitrage is one of the biggest behavioral advantages anyone can really have.

This one is pure gold. So true.

Isn’t 50 rules too many? Feels like it gets overwhelming.