<ol><li>Know Yourself</li><li>Own Your Space</li><li>Respect Market Cycles </li><li>Don't be a dead fish</li><li>Seek religion </li><li>Be Patient Be Bold</li><li>Marathon the Winners</li><li>Diversify Just enough </li><li>Don't lose money</li><li> Mind the Mind</li></ol>Each is explained further - 📜

The 10 Commandments of investing

<ol><li>Seek and You shall find - 1 and 2 are focused on developing personal suited strategy </li><li>Finding religion - 3 to 6 understanding Market cycles and Doing investment research </li><li>Being Devout and Disciplined - 7 to 10 Managing risk and Maximizing returns</li></ol>

Using 10Cs

<ol><li>Tap Dance, Don't work - Keeping Passion and Enthusiasm in what you do</li><li>The World is Cruel - People act in their own interests be aware of Experts and Brokers</li><li>Investing is Personal - No One Size fits all Strategy </li></ol>

Know Yourself

<ol><li>Objectives and Goals</li><li>Interests</li><li>Active or Passive style</li><li>Skills for Analysis </li><li>Long term short term</li><li>Asset class of choice</li><li>Geographic Market</li><li>Risk tolerance level </li></ol>

Questionnaire For Developing Own strategy

Never Test the depth of the river with both feet

Charlie Munger advices to -<ul><li>Constant learning </li><li>Asking why again and again</li><li>Developing fluency in mental models from major academic disciplines </li><li>Be prepared for opportunities </li></ul>

Own your Space

Objectivity and Rationality requires IOT<ul><li>Gaining Conviction </li><li>The only way to be comfortable in your position is to develop IOT</li><li>Never take people's advice on face value</li></ul>

Independence of Thought (IOT)

Never invest in any idea you cannot illustrate with a crayon 🖍️

What are the secrets of the greatest investors in history – the Investment Wizards? What are the life principles, investment strategies and rules they all follow to profit, year after year, in all economic cycles? The Ten Commandments of Investing shares the ten common guiding principles of investing as practiced by the world’s great Investment Wizards. The Ten Commandments of Investing is accessible and applicable to novices and pros alike. Their timeless advice is particularly relevant for investors navigating the post COVID-19 world. Listen to the Investment Wizards! Apply the Ten Commandments to achieve financial freedom through smart investing.

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Ten Commandments of Investing

Power is when we have every justification to kill, and we don't. Oskar Schindler

What Is Power ?

Schindler's List (1993) Liam Neeson as Oskar Schindler

Schindler's List (1993) - IMDb

<ol><li>While taking chances in trading / investing its obvious that we are worried about what happens with our money .</li><li>Worry is adventure and results after it can be satisfying.</li><li>If we fear to become worry full , we are actually fearing to be rich.</li></ol> What real difference will it make if you get a bit poorer while trying to be richer ? - max gunther

Worry and its worth

<ol><li>Only bet what you can affordt to lose is a formula that almost assures poor results.</li><li>Bet heavily if odds in favour and you understand what you are doing.</li><li> If amount is so small that losing it won't bring any significant difference then its likely to bring no significant gains either.</li></ol>

Meaningful stakes 

<ol><li>The fact that diversification reduces risk also reduces by same degree any hope of you getting rich.</li><li>It is safe from everything including danger of getting wealthy</li><li>It breaks axiom of meaningful stakes.</li><li>Gains and losses cancel each other.</li><li>The more speculation you get into more study you require. Hold only what you can handle.</li></ol>

Diversification 

<ol><li>Act of self control makes one better speculator than 99% others.</li><li>By reducing your greed you improve your chances of getting rich.</li><li>Losing control of own desires is self destruction.</li><li>" Don't Push Your luck "</li><li>Don't fear regret if profits go more than your target and you exited on target because this habit guards you from bigger regret of not exiting.</li></ol>

Target Your Profits

It is about saving yourself when we go wrong<ol><li>Knowing how to get out from a bad speculation is rarest gift.</li><li>Getting stuck in a losing venture is worst money pain</li><li>Don't wait until ship is half submerged , 10-20% must be a high time.</li><li>Be on ship only if you have tangible evidence of improvement on way.</li><li>Taking small losses to protect from big ones is wise step.</li><li>Fear of regret , Fear of acceptance of mistake, fear of losing some money can be obstacles to overcome.</li></ol>

When Ship starts to sink, don't pray. Jump.

<ol><li>We should welcome small losses since they protect us from large losses </li><li>If a venture doesn't work walk away don't get trapped</li><li>Habit of such acceptance makes us tough .</li><li>Hope and prayers are nice but they are not useful tools of speculation. </li></ol>

Accept Small Losses 

<ol><li>Don't trust people and their forecast too much as markets work on human behavior which is unpredictable .</li><li>The successful speculator bases no moves on what supposedly will happen but reacts instead to what does happen.</li><li>Design speculative program based on quick reactions to events that you actually see developing in the present</li></ol>

No one knows Future

<ol><li>The minute you think you see an orderly design in affairs of men and women including their financial affairs you are in peril.</li><li>The truth is world of money is world of patternless disorder.</li><li>Patterns are not sound base for one's plan They are alluring and always fooling smart people .</li><li>There are no formulas and patterns to make money while speculating because its related to human behavior. </li><li>It seems fictional but luck plays a good role in speculation .</li></ol>

Chaos is not Dangerous until it becomes orderly

<ol><li>People who follow patterns and formulas are of assumption that history will repeat itself.</li><li>Makings many complex models and charts all backed by assumption is terrible risk.</li><li>Because if this would happen every one will be rich as every one now knows what will happen next. </li><li>History to repeat itself requires same situation at all ends to give same result , which happening is very rare.</li><li>Believe on reliable source and not assumptions from history.</li></ol>

Historians Trap

<ol><li>Speculation is about chances and so it involves times when chances are continuously in your favour or against. </li><li>We we are enjoying a winning streak in any speculation we are actually experiencing a good streak of favourable chances.</li><li>No one knows when such chances ends. </li><li>So one must not fall in this fallacy and Believe that they are too smart and bet heavily overconfidently.</li><li>Bet heavily when odds are in your favour because of some reliable base and not just lucky streak.</li></ol>

Gambler's Fallacy 

<ol><li>Do not become trapped in a souring venture because of sentiments like loyalty and nostalgia.</li><li>Never hesitate to abandon a venture a venture if something more attractive comes into view</li><li>Preserve your mobility</li><li>This doesn't mean you have to bounce from one speculation to another like a ping pong ball. All your moves should be made only after careful assessment of the odds for and against.</li></ol>

Trapping Roots

<ol><li>Hunch is a piece of feeling - stuff ; a mental event that feels something like knowledgeable but doesn't feel perfectly trustworthy.</li><li>The challenge is to decide which hunches are trustworthy and which are not.</li><li>Never confuse a hunch with the hope. Be highly sceptical anytime.</li><li>Trust hunch only if you can explain it ; that is only if you can identify with your mind a stored body of information out of which that hunch might reasonably be supposed to have arisen if you have no such library of data then disregard the hunch.</li></ol>

Hunches

It says essentially that money and the Supernatural are an explosive mixture that can blow up in your face keep the two worlds apart there is no evidence that the God has the slightest interest in your bank account and there is no evidence that any occult belief or practice has ever been able to produce consistently good financial results for its devotees the most anybody has ever been able to show is an occasional isolated bulls I hate to expect help from God or from a psychic power is not just useless but also dangerous .

Superstitions and Religious beliefs 

<ol><li>The 9th axiom warns that optimism can be speculators enemy . it feels good and is dangerous for that very reason . it produces a General clouding of the judgement it can lead you into ventures with no exists.</li><li>The axiom says you should never make a move if you are merely optimistic before committing your money to a venture ask how you will save yourself if things go wrong once you have that clearly worked out you have got something better than optimism that is confidence.</li></ol>

Optimism Vs Confidence

The Tenth Axiom teaches that a majority, though not always and automatically wrong, is more likely to be wrong than right. Guard against betting unthinkingly either with the majority or against, but particularly the former. Figure everything out for yourself before putting your money at risk. The greatest pressures on you, and the most frequently felt, will be those that push you into betting with the majority. Such march-with-the-crowd speculations, the Axiom warns, can be costly, for it is in their nature that they tend to make you buy when prices are high and sell when they are low. .

Buy when every one is selling and sell when every one is buying.

<ol><li>Don't get into trap of averaging a bad venture . Average by buying more at falling price when the ongoing trouble in investment is short lived or over reacted and business is intact.</li><li>By averaging a sour venture we break axiom of jumping from ship before it sink.</li><li>We have to find reasons behind sharp fall in our investment value and if such fall is of permanenet nature or long term than get out of it.</li><li>Enjoy our freedom and buy investmnets on their merits and don't get stuck if the venture turns out to be sore.</li></ol>

If it Doesn't pay of first time ; forget it.

The Twelfth and final Axiom warns about the futility and the dangers of planning for a future one cannot see. Do not get rooted in long-range plans or long-term investments. Instead react to events as they unfold in the present. Putyour money into ventures as they present themselves and withdraw it from hazards as they loom up. Value the freedom of movement that will allow you to do this. Don’t ever sign that freedom away. The Twelfth Axiom says there is only one long-range financial plan you need, and that is the intention to get rich. The how is not knowable or plannable.

Freedom

<ol><li>Long term investors are biggest gamblers so the biggest risk takers.</li><li>Many people who have approach of invest and forget and to hold for 10-15 or more years are rooting them to that investment and assuming that every change in future will be in similar trend.</li><li>Better way is to review your investments evey 2-3 months and ask yourself is it worth continuing or there is better opportunity available .</li><li>lazy long term investments look cheerful because they help to avoid painful decision makings.</li></ol>

Long term Investments

Offers advice on investment strategy and risk management, clears up common misconceptions about the stock market, and discusses economic forecasts and long-range planning.

 If you want to get rich, no matter how inexperienced you are in investment, this book can help you. Its message is that you must learn neither to avoid risk nor to court it foolhardily, but to manage it - and enjoy it too. The 12 Major and 16 minor Zurich Axioms contained in this book are a set of principles providing a practical philosophy for the realistic management of risk, which can be followed successfully by anyone, not merely the 'experts'. Several of the Axioms fly right in the face of the traditional wisdom of the investment advice business - yet the enterprising Swiss speculators who devised them became rich, while many investors who follow the conventional path do not. Max Gunther, whose father was one of the original speculators who devised the Axioms, made his first capital gain on the stock market at the age of 13 and has never looked back. Now the rest of us can follow in his footsteps. Startlingly straightforward, the Axioms are explained in a book that is not only extremely entertaining but will prove invaluable to any investor, whether in stocks, commodities, art, antiques or real estate, who is willing to take risk on its own terms and chance a little to gain a lot. contents Introduction: What the Axioms Are and How They Came to Be The First Major Axiom: On Risk The Second Major Axiom: On Greed The Third Major Axiom: On Hope The Fourth Major Axiom: On Forecasts The Fifth Major Axiom: On Patterns The Sixth Major Axiom: On Mobility The Seventh Major Axiom: On Intuition The Eighth Major Axiom: On Religion and the Occult The Ninth Major Axiom: On Optimism and Pessimism The Tenth Major Axiom: On Consensus The Eleventh Major Axiom: On Stubbornness The Twelfth Major Axiom: On Planning [The 16 Minor Axioms appear within each of the chapters on the Major Axioms]

Ten Commandments of Investing

Schindler's List (1993) - IMDb

The Zurich Axioms

Arnik Surana