Do not purchase popular stocks. Steer clear of the siren call of the most popular “new” thing, IPO, super growth, etc.
2. Do not make or listen to macro predictions. They are rarely correct, and even when they are, they generally do not lead to the expected outcome.
3. Focus on the fundamentals. Remember that over the long run earnings growth and dividend yield will matter much more than investor sentiment.
4. Focus on cash flow. Invest in assets where you can reasonably project future cash flows. These cash flows are the only benefit an investor can derive from their investment. Whether they be paid out in dividends, reinvested in the business, used to repurchase shares, or used to acquire other companies. Cash is all that matters.
5. Remember that investing in anything where you cannot reasonably project future cash flows is speculation. You are speculating that someone in the future will buy it from you for a higher price.
6. Partner with people you trust. As a minority shareholder, it is imperative to trust those running the company. If the actions of management or the board are not transparent, honest, and equal to all shareholders, it is better to avoid the investment.
7. Understand that the outcome does not define the skill or risk involved in an investment (or any other decision made in life). There are a variety of outcomes that can occur from any decision or investment. The key is to look for asymmetrical probabilities where one's downside risk is much smaller than the upside potential.