In this video i'll show you the absolute best rules for investing these 10 rules have served me well. I go everywhere with this list in my back pocket always now. Obviously, there's a lot of these rules which have been stolen from investors like warren buffett, but it doesn't matter. These rules are just as good, even if you plagiarize some of it from guys like warren now, jokes aside, i don't sell nothing, and this list is for free for this video to be watched and shared.

So don't click, nothing, don't smash. Nothing don't buy nothing. Let's just get into it, so the first rule has to do with you not with any specific stocks or markets. You only get one body and one brain, your brain and your body is supposed to function at an optimum level when you're making investment decisions.

Now, obviously, that can't happen if you're not getting any sleep, if you're putting garbage into your body, if you're drinking alcohol getting high, if you're not eating right, everything has to function. It's like an engine. Every piston has to fire at full capacity for the machine to go like crazy. You have to take care of yourself, you don't have a new body, you don't have a new brain, at least until they figure out a way to do it so make sure you take care of yourself first now.

The second rule has to do with exceptional companies. There's just not enough of them out there and if you manage to locate one and based on your analysis, basically get a decision that this company is one of the best in class. There's no point in waiting for the price to dip to get in. Unless you know of a specific thing or a specific event, just sitting around aimlessly and just waiting for the price to drop, it's like being an undertaker waiting for the spanish flute to come back, i mean there's not a lot of sense there.

If you found a great company just get it, there's certain events worth waiting for, for example, like the stuff we're talking about lately with interest rates which are supposed to push a lot of valuations down. But this is a systemic thing that happens every once in a blue moon as a general principle. You found a good company put some money in and then it brings us to our third rule. Every day.

Price fluctuations is none of your shitty business. I mean as simple as that you shouldn't care, don't even check if you invested in good company what does a price fluctuation on a single day matters? Why do you even care? It's essentially the old age example of a farm owner right yelling you across the street? Hey i'm willing to sell my farm to you today and every day he yields this ridiculous price. 10 billion dollars. 15 billion dollars.

I mean it's a freaking farm. I ain't gon na pay 15 billion dollars for a you know a rivien, sorry for a farm. But if this guy comes out the next morning, he says: hey i'll, sell you this for fifteen thousand dollars. Well, that might be a good business that i might take.

But the fact is that you know the market screaming out. Lavish outlandish valuations means jack about the underlying business, and a lot of people have tried to use that against companies like tesla, for example, and shout out to gordon l johnson, who said that you know tesla's valuation at 300. Bucks pre-split was overvalued. I'm a financial analyst and what i do is analysis the the markets seem to feel better at them.

A thousand bucks post five to one split, so you know look at the business look at long term price behavior. I wouldn't look at any daily fluctuations. In fact, i wouldn't even check next rule is that volatility in price is basically meaningless. If you want to evaluate the risk of a company, a lot of people seem to think that you know.

If a stock is volatile, then it means it has. A lot of risk. Well, in fact, has nothing to do with each other. Business risks, managerial risk regulatory risks, cash flow risks stuff, like will the antitrust authority in the us go at amazon or google and can tesla develop in proper energy business? Will there be a regulatory constraint of developing? You know robo taxis for tesla how full serve driving will work stuff like that.

Those are the risks, not the fluctuations in the stock price. This thing is completely meaningless. Now, next rule is be careful of liquidity. Now, usually, when we buy like a house or car there's not a lot of liquidity there, you have to go through a very lengthy process to sell that model over right, even the car.

However, it stocks, we can click a button and we sold it click a button boop and we bought it. This insane liquidity within seconds is driving a lot of people into becoming way more active in investing than they should be, not to mention the fact that it creates a lot of tax disadvantages, you're, putting yourself in short-term capital gains. You might be putting yourself in wash sale. Rule made a whole video about that.

Just be careful now. The next rule is, if you can't understand the business you're just buying the stock out of the sheer expectation that the price will go up because the psychology, the hype, is there and then you're going to resell it later, there's just being a gambler. That's just being a speculate and that's just a fool's errand. I mean long term the strategy never ever works.

It might work once or twice, but as a strategy buying businesses, you don't understand just because they're hyped and you think you're going to be able to resell them in a few days or weeks, just because everybody's gagged over that business. It's usually not a good idea. Now this next rule is actually also very important. I call them surgeon hands.

You want to develop this kind of very low baseline personality. You don't want to get too high on the highs and too low on the lows. You always want to have a stable personality. Stable baseline, never get too excited, never get too low.

Always stay, grounded like a surgeon in the surgery room. Now. Imagine if your surgeon would freak out - oh my god. Oh all this blood right or imagine he starts high-fiving everybody going crazy when he made a perfect incision.

I mean that ain't gon na be nice. Now the next rule is don't, invest money you don't have. I never understood people who are going into leverage and borrowing money to invest. In fact, i think that if you can't afford to lose that money, much like you would have in the casino walking into a casino and basically saying well, i'm just ready to lose a couple thousand bucks a day just to have fun.

If you don't have that sort of money you shouldn't be playing in the stock market, this isn't a place for your rent and food money or the college fund of your kids to be in it's just too risky. So i'm against all sorts of leverage and borrowing. If anything, if you have some extra money, just you know reduce your debt, because that is about to become way more expensive. Now the next rule has to do with uh, believing in yourself yesterday i made a video about elon, he better than himself 2012 2013.

Everybody told him that hey tesla is going to be. You know overrun by competition. These germans are coming right, in fact, uh in 2013, i was in the car sitting in a rental ford focus driving from chicago to one of the suburbs to our hotel, and the driver was one of the the highest paid consultants. I've ever worked with.

He worked for a big ass, u.s public company and we were working together coming back from a meeting and we were talking about tesla and i was younger. He was older and a lot of respect for the dude and he was explaining to me how tesla has a lot of uh child sicknesses in the sense like and they're they're, they're, juvenile and they're, not serious, and how the germans are about to go. And then just take their lunch and completely destroy them basically said well. Tesla doesn't really have a future, it's just a novelty, and then he went on to explain to me how he loves his tesla model, s which he just bought, and that just goes to show you a lot of smart people can be wrong.

A thousand two thousand five thousand people can be wrong and you might be the only guy who gets it right happened before two thousand the dot-com bubble. Everybody was wrong: 2008 housing crisis. Everybody was wrong. The fact is that when you hear a lot of smart people saying something about a stock or a company or the market, it's not necessarily true, you might be the only one who gets it just bet on yourself believe in yourself it doesn't mean you have to Go have it into a bad deal, but you know if you've done the research.

If you understand the company, if you believe in it, don't change your decision just because some other smart dude says that you're, an idiot believe in yourself and my last rule has to do with diversifying your portfolio there's different opinions. If you ask ray dalio, he says diversify like crazy. If you ask warren buffett, he says that you don't need to diversify at all. Of course, this is a very personal issue.

It has to do a lot with your risk allocation. My opinion, this is very, very simple, i'm kind of in the middle, i think over diversification is death. There's no need, if you're going to over diversify. If you're going to own more than 15 companies, you know just get the s.

P. 500, there's less risk doing it this way and if you do it with the s p, 500 you're probably going to get better results. Now i think that there's a limited amount of exceptional companies - there's probably not more than 15 in the market at any given moment. It's like the nba draft or the nfl draft.

The top 15 players in the draft are usually for the most part way better than the no, the bottom 15 players. Sometimes, of course, it's changes. Of course, we know tom brady was selected in the last seventh round of the end of the draft became the greatest of all times, there's a lot of examples where he doesn't pan out and but for the most part you know. Ninety percent of the time - there's not a lot of good companies out there, so if you can find those 15, the chances of you finding the same level of quality from 16 onwards to 30 is not high enough.

So i limit myself to 15. You can do it at 10., it doesn't really matter, but over diversification is just pointless. You know just just get an index fund and of course, if you haven't so please make sure to thank below in the comments to the channel members and the patrons of the channel who sponsor these videos and allow me to make them for free. So you guys can enjoy them without paying anything.

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