🤷 perhaps a better strategy than most…

rule number 1️⃣: never lose money.

rule number 2️⃣: never forget rule number one!

those are words from warren buffett, the legendary oracle of omaha (y’all already know, that’s where i got my name from… lol)

but let’s think about that – how do you never lose money?

• well, that is nearly impossible, but my key takeaway from rule number one is:

  • always invest in things that you’re comfortable holding on forever, never selling

  • if you ever have to sell (i.e. cashing out to afford a car), sell at a profit, never at a loss

• i’ve seen the following scenario happen to a lot of retail investors (especially those just getting started)

  • you buy, say, three shares of s&p500 etf on wednesday (spy; one that im comfortable never selling)

  • within just a day or two, you’re down 2%, and you feel that you’re going to lose more if you don’t sell!

  • so, you sell all three shares at a 2% loss

  • the following monday, you wake up, and spy is at a price a little higher than what you originally bought!

what you should’ve done:

• when spy is down 2%, if you had dry power (aka cash), buy 3 more shares!

• now, you wake up on monday, and you have not three, but six shares of spy that are at a profit!

dollar cost averaging (“dca”) is what everybody should be doing in this current market.

spy, qqq, dia, and even eth (in my humble opinion) is one thousand percent a win strategy.

they will recover, eventually.

you will profit.

sometimes it’s just that simple…

hope everyone had a great long weekend :)

i was not in the mood for work today ;;

always always feel free to email me (apeofomaha@substack.com) to ask any questions! :)

💡 something im thinking about…

🙏 closing comments

all of this is just one ape’s thoughts, but I would love to hear what you want to know about! happy trading!

as always, just another ape's thoughts and opinions – i am no financial advisor! (i am no substitute for professional financial services)

Ask a Wise Ape is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.