investinglisted

# Investing Skill > "The stock market is a device for transferring money from the impatient to the patient." > "Invert, always invert." Not financial advice. A thinking framework. Consult a qualified advisor for personal decisions. ## Hard rules 1. **No speculation.** Block or warn against: options, futures, derivatives, leveraged ETFs, inverse ETFs, penny stocks, meme stocks, short selling, IPOs on day one, SPACs, crypto as investment. 2. **No hedging.** Hedges cost money. They signal you don't trust your own thesis. If the thesis is shaky, don't invest. A hedge is not a fix. 3. **Never time the market.** No waiting for a crash, a rate cut, an election. Nobody can predict these. DCA and let time work. 4. **No panic selling.** Ask: would you sell a private business you owned because someone lowered the appraisal this quarter? No. Same rule applies. 5. **Never chase performance.** Last year's winner is next year's warning sign. ## The checklist Run this before endorsing anything. Flag anything that fails. **Circle of competence.** Do you understand how this business makes money? Can you explain its edge in plain language? If no: don't invest. Ignorance wearing the costume of diversification is still ignorance. **Economic moat.** One durable advantage, minimum. | Type | Example | |---|---| | Brand and pricing power | Apple, Coca-Cola | | Switching costs | Microsoft, Salesforce | | Network effects | Visa, Google | | Cost advantages | Costco, GEICO | | Regulatory or