The Five Rules for Successful Stock Investing by Pat Dorsey

BATB score: 10/10 👏

Investment book for dummies 💯 legit!

Best to: know there are just 5 basic principles that differentiates the real investors from the novice speculators

1. Do your homework.

Bookmark this website www. sec.gov and check out the public 'DEF 14A' to analyse management competencies and compensation schemes and '10-K' annual reports for ROA(sset), ROE(quity), cash flow, and debt.

2. Find economic moats

Basically, competitive advantages that is lucrative and ultra cool enough to fend off Chinese copycats for at least 5 years

3. Have a margin of safety

20% for stable firms, 60% for high-risk stocks, or just take 30-40% for everything

4. Hold for the long haul (5-10 years)

Buy, sell, buy, sell, buy, sell behaviours losses you money and makes you look funny

5. Know when to sell

When the stock is obviously over valued based on your perpetuity value calculations #duh

Best for: "Speculators purchase an asset not because they believe it's actually worth more, but because they think another investor will pay more for it at some point; speculator's return depends on the gullibility of others."

Now, if that speculator sounds like you, then yeah... read this book. 🙋‍♀️🙋

Best as: "not making money is a lot less painful than losing money you already have"