1) To identify an outstanding company
This principle is based on a common sense, A good company their intrinsic value will appear in the share price long term. So investors task is to do their "homework" in the countless possible to find out the really good companies and good management team.
2) Less is more
For an average person, three counter is enough. If you buy more counter you're more likely look at overall surface. The more you have a deeper concern, the lower your risk, income will be better.
3) Patience
Invest is not equal to gambling, gamble lose mean lose you can't get the money back. But invest, you can wait until market price higher than your cost only you sell.
4) Do not worry about short-term price fluctuations
Short-term price fluctuations could be control by some fund manager, punter, trader. Intrinsic value will reflect in the market price it's just matter of time, don't worry about short-term price fluctuation it'll go back on track once time come.
"They should try to be fearful when others are greedy and greedy when others are fearful.” - Warren Buffett
"They should try to be fearful when uncle auntie start buying share and greedy when uncle auntie leaving market" Malaysia version
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