R's Key Foundations & Principles
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Long-term Ownership Beats Short-term Profit
Instead of selling a great company at a 100% return, seasoned investors know and consider the value of time and patience. To put this in perspective, while Apple stock has returned more than 300% over the last 5 years, long-term shareholders have earned more than 50,000% over the last 20.
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Mindset & Mentality over Math & Mechanics
Developing the right pyschology around your investing will allow you to set rules and forget about them, knowing that whatever happens short-term, regardless of price volatility, is just noise. Investments in great companies (and other assets) will likely grow handsomely over time.
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Conviction & Consistency Drive Compounding
Consistent purchases of stock in companies that deserve your conviction can build your wealth on auto-pilot. For example, billionaire Ron Baron spent 3 years between 2014 and 2016 accumulating $380 million in Tesla stock. 5 years later, by September 2021, his firm had earned $4 billion in profit. He's still holding.
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Benchmarks Help to Build Your Blueprint
Starting your investing journey without a plan is a surefire way to pay dues with unnecessary losses. Set your destination as a multimillion dollar portfolio, then chart a course that includes how much you'll need to invest and earn on your capital to get there. This allows you to properly track your growth and manage your risk.
Stick to these principles and suddenly the task of making excellent investment decisions becomes much, much easier.