Every successful investment strategy requires you to have an EDGE (and some luck)
In very simple terms, I've found that my EDGE comes down to three inter-connected things:
- No Leverage: I never ever use leverage. Period. No exceptions. Massive wealth can be created without it. But every single story of wealth destruction involved leverage. Know whats yours and work with that.
- Long term: I have a 5-10 year investment horizon min and I limit my time studying 2-3 ideas. This allows you to spot long term trends and provides a natural filter to all the short-term BS distractions (quarterly earnings, CNBC, etc)
- Volatility: Because of 1 and 2, I can stomach lots of volatility and not lose any sleep. Every drawdown is an opportunity to buy more great stuff - rather than a cause to pop pills and move back with the parents.
I would be curious to know how people define their own EDGE and what we can learn from each other.
Submitted April 03, 2021 at 06:30AM by Ghanem016 https://ift.tt/3fxYEem
