Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1

It is possible for the stock market to price things wrong! You can find wonderful businesses on sale often.

Buffett has this famous quote to say about the stock market,

“Remember that the stock market is a manic depressive.”

For any consumer of daily financial news, this will ring true. Equity markets swing wildly from day to day on the smallest of news, rally, and crash on sentiment, and celebrate or vilify the most inane data points. It’s important not to get caught up in the madness but stick to your homework.

Always stay rational.

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