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When science really sprouted, it changed the narrative completely. It was not explaining how things happened, but prohibiting certain things from happening. At the same time, it could predict how wide the range was. This is the development of science. When we discuss investment principles, I think the development of investment principles is similar to this.
Investment faces a slightly different environment from science. Investment faces huge uncertainty, which includes both the uncertainty of information in the outside world and the uncertainty of your inner emotional ups and downs. Therefore, you will definitely make mistakes in an uncertain world. The key to principles is that it can help you avoid the biggest mistakes.
What are the big mistakes in investment?
The first type is permanent loss of capital; the second type is actually more abstract, that is, what is the purpose of investment? If the purpose of investment is to make you more free, then this freedom will definitely be accompanied by more free time. At this time, investment must face a trade-off. If money will not be maximized, then it is necessary to avoid continuous loss of time or energy. The third biggest mistake is missing a major opportunity that should belong to you.