There is No Investment Rule that Always Works
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If there was on single rule, which always worked, everybody would in time follow it and, therefore, everybody would be rich. But, the only constant in history is the shape of the wealth pyramid, with few rich people at the top and many poor at the bottom. Thus, even the best rules do change from time to time.
Stocks always go up in the long term, Many companies have been disappeared that were ruling the market once. There are also some countries, their stock markets went to zero. Just think of European stock market after 1945 and Shanghai after 1949.
Buy low and Sell High, The problem with this rule is that we never know exactly what is low and what is high. Frequently what is low will go even lower and what is high will continue to rise.
Buy high quality stocks and hold it tight, another highly dangerous rule. Today’s leaders may not be tomorrow’s leaders. Remember the case of Silverline Technologies, Satyam Computers and many more have been disappeared from the stock market. Generally, you will know about those companies who have done well.
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