Selecting twenty to thirty good stocks in unrelated industries is not an easy task. It takes immense efforts to follow twenty shares, so investors take the shortcut. They try to replace the efforts with more shares, hundreds of those.

Proper diversification can be achieved with a handful of assets. On the other hand, a poorly selected portfolio with hundreds of stocks and bonds can be inadequate for diversification purposes.

Always write down all the reasons of why you are buying an asset. Review the list periodically and only sell when the majority of reasons are not valid anymore.

Every all-time high of the stock market proves that the market has eventually recovered from all downturns, 100% of the time. This strategy is the only one that worked every time without a single failure for centuries.

Capital efficiently and frequently flows between bonds and stocks. It pays to keep an eye on yields offered by these markets.

Mandatory allocation of capital between bonds and stocks by mutual funds creates tremendous short-term opportunities for investors.

The stock market, as a whole, has and will recover from every downturn.

The share buyback is not always a good indicator; look deeper.

When you invest in stocks or any other asset, your primary risk is the permanent loss of capital. Your secondary risk is a sub-par return, and that’s it. You don’t have any other risk.