7 golden rules in investing you must know | elon musk

7 golden rules in investing you must know | elon musk

Rule 1: Focus on Business Fundamentals, Not Geopolitical and Macroeconomic Developments

Peter Lynch, the legendary manager of the Fidelity Magellan Fund from 1977 to 1990, once said:

“If you spend more than 13 minutes analysing economic and market forecasts, you’ve wasted 10 minutes.”

Focus on business fundamentals to find great companies because it is great companies that produce great long-term stock market returns.

Warren Buffett’s investment conglomerate, Berkshire Hathaway, saw its book value per share increase by 18.7% per year from 1965 to 2018.