Tiger Woods hits about 500 golf balls a day when he's practicing. With each practice shot, he has a very specific target in mind.
The same approach holds true for a good investor. Successful investing is, by definition, a methodology. And just as in any other trade or profession, there are methods and techniques you need to apply, regularly and intensely, if you want to come out on top. After all, investing, like golf, is a game between you and all of the other competitors out there. If you can't bring anything to the game, you shouldn't be playing.
In the investing world, there are six investing principles you need to apply if you want to succeed in the long term. These are principles that the world's greatest investors are constantly dispensing. Just pick up a copy of a Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) annual report or a Longleaf investment report, and you'll see them on display. Every investor will apply them differently, but they all infuse the activities and methods of the most successful investors on the planet.
These principles all build on each other, in that you cannot apply a subsequent principle until you understand the one before it. In this article, we'll consider the first three.
I will post the principles in continuation with this.
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