The single most important math in investing, & most people learn it AFTER they're wiped out


Lose 50%... & you need a 100% gain just to get back to even.
Read that again.
Lose 80% on some YOLO play? You need 400% just to break even. That's YEARS. Maybe a decade. Maybe never.
This is why my rule #1 is the same as Buffett's: don't lose money. Rule #2: don't forget rule #1.
It's why I only allocate to elite companies below their fair value, with ratios always in check
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JoshuaParawansa
· 10h ago
Bull Run 🐂
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