If you want to become successful you need to become rich. And if you want to become rich you need to become smart. The number one rule to becoming smart is to put down all of those dorky books and burn them. As the not so great Charlie Munger said, “I’ve never known a smart man who didn’t get drunk all of the time, zero. Here are the top five rules for successful investing.
Don’t do research
Think about it – how many times have you looked at a company’s balance sheet, decided against the stock, and 2 weeks later the shares are up 30% in your face. Compare those returns to your own underperforming portfolio. The moral of the story is very simple: don’t do research, you’re not good at it.
Put all your eggs in one basket
Warren Buffett has always been a major critic of diversification, defying the common rules of investing by only choosing to own one stock – Berkshire Hathaway. Learn from him. Yoloing on that one bankrupt company could be your path to financial independence.
If it seems too good to be true, don’t be a piker
Life comes down to a few moments, and going all in on that Bitcoin pyramid program you were told about on Instagram could be the difference between a 1-bedroom apartment and an NYC penthouse. Don’t be afraid to dream a little.
Never invest in something you actually understand
Let’s face it, you’re not that bright, so on the off-chance that you do actually understand a company, everyone else does too. It’s already priced in, and there’s no chance for you to generate alpha. Instead, you should always invest in companies you don’t understand – the more complicated the better. These are the companies that offer the greatest potential returns.
Always use leverage
If we’re being totally honest, investing is boring. You work and you work and all you get is 9% on your capital. Well this is going to change that. By going all in 4x leveraged on a stock you can amplify your returns whilst simultaneously adhering to the principles above! No longer will your short positions be confined to just 100% potential returns.