Introduction

Asset types🔗

I keep/invest money in the following assets:

• Stocks
• Bonds
• Precious Metals
• Cash

Most of the money(70%-95%) should be preferably kept in stocks when it’s possible

Risk Management🔗

Avoiding and reducing permanent losses is even more important than gains.

Risk management rules are developed to minimize possible losses from unpredictable market situation (which are out of investor's control) and poor investment decisions (which normally must be avoided).

Principles:

• Margin of Safety
• Diversification
• Healthy physiological and emotional state

Risk management consists of the following elements:

• Restriction regarding maximum amount of capital that can be allocated into a single asset
• Margin of Safety: assets must be bought only when they are below a fair price