5 Core Investment Principles Series – Keys to Successful Investing
Investing is not simply about buying and selling stocks or real estate. It is a long-term process of managing assets, making time your ally, and achieving stable results in an uncertain future.
1. Why Do We Need Investment Principles?
Financial markets are always filled with uncertainty and volatility. If you rely only on intuition or impulsive decisions in such an environment, it becomes difficult to avoid major losses. Therefore, before starting your investment journey, it is essential to establish your own investment principles and stick to them with discipline.
2. The 5 Core Investment Principles
- Risk Management – Avoid losses, secure a margin of safety, and refrain from excessive leverage.
- Valuation – Identify undervalued assets compared to intrinsic value and invest only in areas you understand.
- Investment Horizon – Take a long-term perspective, believe in the power of compounding, and don’t be swayed by short-term fluctuations.
- Self-Discipline – Stay resilient against market sentiment, control emotions, and adhere to your principles.
- Continuous Learning & Growth – Keep studying and learning from failures to grow steadily as an investor.
3. Series Structure
This blog series will cover each of the five principles in depth and illustrate how they can be applied in real-world investing, accompanied by practical examples.
- Part 1. Risk Management – The fundamental philosophy of never losing money
- Part 2. Valuation – How to identify truly valuable assets
- Part 3. Investment Horizon – Believing in compounding and investing long-term
- Part 4. Self-Discipline – The power to control emotions and market psychology
- Part 5. Continuous Learning & Growth – How to keep growing as an investor
Warren Buffett’s Investment Strategy, Investing Rules, and How He Made His Fortune
Warren Buffett's career is built on core investing principles: here are some of his key investing rules, and how he follows them.
www.investing.com
In the upcoming parts of this series, we will explore each principle in detail, offering guidelines to help you establish and uphold your own investment principles.