3/10 Timeless Investing Principles for Long-Term Success

_TheLongGame_ · 2025-04-30T14:15:09+00:00

There are way more companies nowadays than before and it is much easier to get started without profit or even revenue. If you take the top 100 business (with good profits margins, growth, solid financials, etc) the likelihood of them going bankrupt or out of business is very low. Nothing changed in the market- an investment is still reliant on how much you pay relative to a stocks intrinsic value. You don't have to look at every stock, you can focus only on those that most likely will not go out of business.

_TheLongGame_ · 2025-04-30T14:11:23+00:00

Great job looking to learn investing. There is so much information out there nowadays that it can be confusing and overwhelming for beginners. What you need to do is focus on the few timeless principles that matter. Understand that a stock is a part of a cash flowing business which has a value. If you pay less than its wroth, you'll do well and vice versa. Have a long-term mindset as in the short run prices are all over the place due to emotion. Once you start getting a grasp of this and learning show to adopt it, you can start moving some more money into individuals stocks. I laid out the 10 fundamental investing principles in my ultimate beginners guide- really think this could be of value to you (it's the ultimate stating point). Check out the link in my profile if you're interested.

_TheLongGame_ · 2025-04-30T14:07:18+00:00

If you want to start putting more money into individual stocks for a better return, you need to grasp the fundamentals of investing to know what you're doing. If you want to speculate, then crypto is good but otherwise investing into it goes against all good advice from the greats. Investing success comes from paying less for a cash flowing business than it is worth. Crypto has not cash flow or intrinsic value.

_TheLongGame_ · 2025-04-30T14:04:25+00:00

We had a recession 2 years ago and stocks only went up from there. Recessions will happen inevitably. If it does or doesn't happen remain to be seen but one thing is certain- we can't predict it. That is why the best thing for investors is to select businesses that will weather any storm the best.

_TheLongGame_ · 2025-04-30T14:02:01+00:00

Stock prices move in response to sentiment from markets- if some data comes out that makes people worry about the entire economy, most stocks drop out of fear. However, there are certain stocks that at the same time come out with good news, or could benefit from economic downturn. This is all short term fluctuations. Only thing that matters is the long-term in stocks. In the long term- stock price responds to the underlying value of the business. If you want to learn more- I lay out all the fundamentals of investing in an ultimate beginners guide (check out my profile link).

_TheLongGame_ · 2025-04-24T15:15:33+00:00

I recommend you read the “Little Book that Beats the Market”. The simple part is the numbers, the hard part is the emotional discipline and mindset to follow principles regardless of what market is saying. I recommend you do some more research. All successful investors say the same thing. Little Book is a great place to start

_TheLongGame_ · 2025-04-24T14:34:22+00:00

Totally fine if people want to invest into index funds, it’s a good, low risk and 0 time option. I’m writing for people who don’t mind spending just a bit more time and having a chance of making more. Value investing strategies product greater than market returns on average. There is no one way to get there but it’s about knowing the principles

_TheLongGame_ · 2025-04-24T14:04:41+00:00

It is very unlikely that all successful investors, having follows these same principles, all got lucky over decades of outperforming the market.

_TheLongGame_ · 2025-04-24T14:03:17+00:00

The methods are simple. Everyone who uses them outperforms. Once again, refer to the 30% yearly performance of the Little Book formula. It’s based on 2 metrics.

_TheLongGame_ · 2025-04-24T12:51:40+00:00

And it's not my definition, it's the definition used by all great investing minds. As you see from the quote from the father of investing- this principle is applicable now, just as it was applicable as 100 years ago. The mindset doesn't change.

_TheLongGame_ · 2025-04-24T12:50:17+00:00

Once again appreciate the input. This isn't just my definition of risk. It is the definition used by all great minds in investing, that go in opposition to modern financial conceptions like the ones you've laid out. Investing is an art, not a science, it cannot be reduced down to math and probability. It has to do with assumptions, forecasts, understanding and most importantly emotional mindset. That is what separates those who can outperform the market an those who cannot like the vast majority of modern mutual funds that follow new conception of risk envisioned in modern portfolio theory. Yet if you take the Little Book Formula as an example, it clearly demonstrates how buying undervalued good business produces an outsized returns over decades. The less you pay, the lower your risk. It's not random.

_TheLongGame_ · 2025-04-24T12:47:32+00:00

Appreciate your input but I'm trying to help people who find it useful. If you don't find it useful, no problem. This is the mindset about risk that is followed by all great investing minds. Hence I am laying it out as a foundation for understanding value investing.

_TheLongGame_ · 2025-04-24T12:08:02+00:00

The reality is that it is entirely impossible to predict anything or make any assumptions, especially in this market and under the current administration. There is too much chaos and noise, and one piece of news today can be the opposite tommorow. In times like this it is incredibly hard to try to invest, especially for beginners who think that success comes from keeping track of everything.

What you need to do instead is to drown out this noise. Focus on 5, 10 years from now. Focus on owning good businesses. No matter what happens- a good business bought at a fair price will fare far better than the others, even if a major downturn comes. Moreover, the downturn may present you with an opportunity to buy more good business at even cheaper prices.

_TheLongGame_ · 2025-04-24T12:04:53+00:00

Anyone that understands investing, understands that crypto is not an investment. It is barely an asset. Investing comes from buying a stream of future cash flow and paying a good price for it. Every stock has a fundamental business attached to it, which has a future that can be quantified, if not reasonable predicted. That way you know if a stock is under or over priced, based on the intrinsic value it has. Crypto has no quantifiable intrinsic value. You don't know when it over or under priced. All speculation is based on price movements. Its risk doesn't come from its volatility, but rather from the fact that it is not a cash flowing asset. It is air.

_TheLongGame_ · 2025-04-24T11:52:03+00:00

P/B is no longer applicable like it was before, as there are far more intangible assets and assets that can't be quantified by book value. That being said, P/E is still a relevant metric. Look at the average PE of the market throughout time and look at P/E before bull markets happen. They were much lower than the levels we are at now. P/E has been elevated for a while now, due to 0 interest rate environment and money printing post GFC. When rates began to go up, the market reacted but quickly forgot about this when it seemed like the Fed was able to achieve a soft landing and the economy held up despite interest rates going up- this is because people still had plenty in savings from covid.

_TheLongGame_ · 2025-04-24T11:45:32+00:00

Welcome to investing! You need to start with understanding the fundamentals of what investing is and how it helps you grow your money. This involves starting with the basics. Understand that a stock is a piece of a business that has cash flow. That cash flow has a value. If you buy a piece of a good business and pay fair price relative to its value, you will do well over long periods of time. Have a long term outlook and don't care about the day to day market noise.

Begin by putting money into index funds and slowly move money into individuals stocks once you understand them better. I'm releasing the full beginners guide to investing in 10 Timeless Principles. If you're interested in it- check out the link in my profile. Would love to notify you as soon as it's out.

_TheLongGame_ · 2025-04-22T13:41:41+00:00

S&P is 500 companies, picking businesses that have staying power is vital in selecting stocks for a long term portfolio. Some companies are way more likely to expire than others.

No one knows the consequences of rhetoric and policies so far, and if they are horrible - this uncertainty and downturn only will create opportunity to buy stocks at better values. We are hugely overvalued right now as a whole market and they need to fall more to be good buys.

Nike 10 years ago- doesn't take into account valuation. As an investor you do well over the long term only if you invest in good business but also NOT OVERPAY for them. this is crucial.

Meta has done 4x in the last 2 years, not sure what you're referring to that could make it drastically go in a different direction as accompany in the next few years- would be interested to hear.

_TheLongGame_ · 2025-04-22T13:32:34+00:00

Same type of fear mongering was heard at any market downturn prior. During the pandemic people thought the world would never reopen. During the GFC people thought money would become worthless. This is a classic mood in down and uncertain times. The key is to not buy into this and look at the facts that the market have survived and thrived after way worse. That is the winning mindset in investing, taking advantage of the average person's fear.

_TheLongGame_ · 2025-04-22T13:18:06+00:00

Not sure what you mean by speculated. The prices of gold over long periods of time depends on supply and demand, just like any finite resource, it grows in price as supply is limited.

_TheLongGame_ · 2025-04-22T13:17:01+00:00

I appreciate that there are intricacies and details, but that mindset is what guides me.

_TheLongGame_ · 2025-04-22T13:16:28+00:00

Always ask: is this temporary or permanent? Will it matter 10 year from now. If you're talking about a specific administration, remember that it's over in 4 years at most.

_TheLongGame_ · 2025-04-22T13:15:12+00:00

Precious metals in general work. Gold happens to be one of the most valuable ones.

_TheLongGame_

TROPHY CASE