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Just my thoughts #0680

The most important rule in investing is not to lose your initial capital. Making money comes later. If you lose 50% of your principal, the loss rate is 50%, but to recover that principal, you need a 100% return. This is because the baseline of your return—the principal—has already been halved. Many people tend to think that if they’ve lost 50%, they only need a 50% return to break even. However, this is a misunderstanding of the starting point. In investing, the baseline is always the original principal. The principal after a loss is no longer the same; it’s already in the past. - Joseph’s “just my thoughts”
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Just my thoughts #0357

The professions that people admire in the United States include police officers and firefighters. Another group of people is carpenters. A key concept in economic activity is “independence,” which means the ability to earn a living on my own. Carpenters and masons are vital for constructing houses and cities, and the skills involved in producing or creating something are crucial to achieving independence. I cannot leave my future in someone else’s hands. Poverty also implies that I am enslaved.


- Joseph’s “just my thoughts”




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