Co-Founder MyWallSt: If You Like the Business at 100 Dollars You Should Love It at 50 | Emmet Savage

There are six golden rules to being a successful stock investor, and they are broadly common to every investment book written and broadly common to every successful investor.

So the first rule.

is get started which sounds crazy it's not a rule it's just instructive you know you can't expect to be a world-class chess player if you've never played a game of chess we can dream about wanting to be something but you've got to get started so get started is rule number one and you only have to do it once so it's distinct open a brokerage account put 50 bucks in there and buy something you believe in And I might add, I just want to tell you that very, very, very rarely is somebody's first investment anywhere near their best one.

So really it's a bit like your first, it's a little bit of a dated example, but the first album you buy, it's very dated.

Like we don't do that anymore.

But the first, maybe your first love isn't necessarily the one that will see you through for the rest of your life, but it's a meaningful thing.

Your first love, your first album, your first day at a gym, your first day in college.

Everyone remembers their first, their first everything.

Kind of has a special relationship.

So your first stock should be something you believe in.

Might be LVMH or Nike or Under Armour, or it might be something like Ferrari.

But so the first was get started.

The second rule that's common to more or less every great investor is think long term.

A buy and hold philosophy outperforms the market in the long term.

And that's a really important rule to remember.

This is not a pursuit for someone who wants short-term gains.

There's an awful lot of advertisement and social media that might say, let's go day trade and use our platform and we'll give you alpha.

What you want to do is start this as a lifelong pursuit.

And I would hope, Harvey, a lot of your listeners are in the springtime of their career, like you.

Springtime, it might be in... late stage education or early stage career but that you have a tremendous advantage there isn't a there isn't an 80 year old billionaire in the world who wouldn't hand over their fortune to be 40 again let alone 20 something or 30 something so the time advantage you have allows you to think long term so that's the second golden rule first one is get started second is think long term the third golden rule that broadly common to great investors is never borrow money to buy shares now we know there's things you can do where you do there's a lot of different instruments for borrowing money to buy shares and of course those who are lending the money will make it sound like an appealing proposition but Don't borrow, don't invest money you don't have.

As I'm sure you've heard before, Harvey, from previous guests, the importance of clearing credit card debt and getting rid of the debt outside your door is very important.

Long-term debt is okay in your life.

Borrowing money to buy a house, borrowing money to get a quality university degree or master's or PhD, all of that is acceptable use of debt.

but it isn't acceptable to borrow money to buy shares why because when shares go down as they do almost invariably the minute you buy them you still owe the lender that money back and that's a stressful situation so rule number three is never borrow to buy Number four is diversify.

You've heard this before, but it's don't put all your eggs in the one basket.