The first rule of investment is not to lose money. The second rule is never forget the first.

The first rule of investment is not to lose money. The second rule is never forget the first.

To avoid making major mistakes, the most important thing is to protect your principal and then let it continue to grow, with the speed of growth being the least important factor. Only by never leaving the poker table can you achieve ultimate victory.

Never make decisions that could force you to leave the table.

Essentially, the income we earn in the market comes from the profits generated by corporate operations. If you achieve excess returns in the market, someone else must have lost a corresponding amount. In other words, once our returns exceed the company’s profits, it turns into a zero-sum game. If transaction costs and taxes are taken into account, the actual returns the market can provide are likely slightly lower than the profits earned by the companies.