Tag Archives: Zurich Axioms

Axiom 12: Planning

Posted on by

Axiom 12:  Planning

Long range plans engender the dangerous belief that the future is under control. It’s important never to take your own long range plans, or other’s people, seriously.

A plan is a life long illusion of order.

Dont try to make very long term plans. Instead, stay light on your feet. React to events as they unfold in the present.

When you see opportunies, go for them. When you see danger, jump out of the way.

The only long range plan you ever need, is your intention to get rich.

Minor Axiom XVI -  Shun long term investments

Dont get rooted. Review your investments every three months.
1) Would I put money in this investment, if it were presented to me, for the first time today ?
2) Is it progressing toward the ending position that I envisioned ?

Axiom 11: Sturborness

Posted on by

If it doesn’t pay off the first time, forget it.

Minor Axiom XV:  Never save a bad investment by averaging down

Every investment should be looked at on it’s own merit.

“Would you buy that particular stock if you did not already bought it at a much higher price ?”

When you are averaging down, you are ignoring Axiom 3 – “When the ship starts to sink, dont pray. Jump.”

Axiom 10: Consensus

Posted on by

Disregard majority decision. It is probably wrong

Dont believe anything until you have verified it.

Minor Axiom XIV:   Never follow speculative fads. Often the best time to buy something is when nobody else wants it.

“Am I making this decision because it’s smart or because a majority thinks that it’s smart ? ”

Whatever you do, whether you bet with the herd or aginst, think it through independently first.

And the herd isn’t always wrong.

The majority, though not always and automatically wrong, is more likely to be wrong than right.