Investing rules

I remember Richard Band. In 2009, I remember reading that he has been asking people to buy shares when there is blood in stock markets, very much like now. However, I did not heed his advice then.

This is what he is advising now, amidst the current market turmoil: You should be buying stocks, not selling them. This is not 2008 all over again. It’s not even 1987

Quoting from J. Paul Getty, a billionaire who truly understood the fundamentals of successful investing, said: "Owners of sound securities should never panic.", Richard Band qualifies that opportunities like my biggest, safest win ever appear most often at moments of panic in the market. And you could certainly call the last 10 days a panic—gold hit new record highs and great businesses like Apple and Berkshire Hathaway took a big haircut on news that the world’s major economies have major problems. But if you can ignore the fear merchants and the “end is coming” crowd, big profits are yours for the taking, because this blind panic sell-off is an opportunity to make some serious money. Perhaps the best chance you’ll have for the next 5 years."

He narrows down successful investing to these simple rules:
Don’t Follow the Crowd
Buy Into Extreme Panic
Be Patient
Buy Quality
Average Down if Necessary

Great advice, and great rules.