100 to 1 - Notes

                    Buy right and hold on !!

• Investing is easier than you think, but harder than it looks - Warren Buffet

• Your goal as an investor: "Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five, 10, and 20 years from now. Over time, you will find only a few companies that meet these standards — so when you see one that qualifies, you should buy a meaningful amount of stock.” — Warren Buffett

•  If you know the business inside-and-out, you will not be inclined to make an irrational decision when the price dips and/or the market tanks.
• “The first rule of compounding: Never interrupt it unnecessarily.” - Charlie Munger

• The concept of a circle of competence is critical because of ‘Mr. Market.’  The market exists to expose the human weaknesses of its participants.  Your lack of understanding, as well as psychological or physiological frailties, will be laid bare in the market.  Those who have worked in it can relate to this statement.  A market is the sum of all participants and, if you don’t know what you are doing, you will be beaten down sooner or later.  This is why we hear market tales all the time about people making big money but actually losing money in the end.  Mr. Market can discover the fallacies in your logic and identify all of your weaknesses. If you are operating outside of your circle of competence, or your circle has no boundary, Mr. Market will find you at some time, in some circumstance, and he will destroy you.  -Li Lu (link)

In order to capture the potentially higher returns that stocks can offer, you have to reconcile yourself to the certainty of horrifying short-term losses. If you can’t do that, you shouldn’t be in stocks — and shouldn’t feel any shame about it, either.