One of the things that successful investors across the world have known for centuries is that sustainable results are tied to strong principles. By using time-tested rules and guidelines to shape our decisions, we move closer to success with each passing day.
It has been long been said that time is the friend of the good business, and the enemy of the poor one. Similarly, being principled investors places time on our side by aligning ourselves with the fundamental underpinnings of financial success that do not change.
The foundation of Jason Hartman’s core investing philosophy are contained in his “Ten Commandments of Successful Investing.” These first 10 guidelines that Jason provided to his audience of investors were 1) Thou Shalt become educated, 2) Thou Shalt retain a professional investment counselor, 3)Thou Shalt maintain control, 4) Thou Shalt use prudent financial planning techniques, 5) Thou Shalt not gamble, 6) Thou Shalt diversify, 7) Thou Shalt be Area Agnostic™, 8) Thou Shalt borrow to maximize leverage and accelerate wealth creation, 9) Thou Shalt only invest where there is universal need, and 10) Thou Shalt invest only in tax-favored assets.
However, as time has gone by, Jason has seen the need to expand on the original 10 commandments with additional insights. The reason for this is because the market has changed since the first 10 commandments were published. The financial crisis of 2008 has created many ripples that continue to echo throughout the economy. Succeeding in the “new” market environment requires that investors engage with more intelligence than ever before.
It is because of this that the “next” Ten Commandments were created. These guiding principles are: 1) Thou Shalt not be a sucker, 2) Thou Shalt hold thy tenants accountable, 3) Thou shalt understand the theory of relativity, 4) Thou Shalt benefit from mother nature, father time, and socialism, 5) Thou Shalt have a reality check, 6) Thou Shalt pursue quality, 7) Thou shalt embrace the fragmentation, 8) Thou shalt use shelters to protect and preserve wealth, 9) Thou shalt not make emotional decisions, and 10) Thou shalt look at the big picture.
These guidelines provide additional depth and insight to the original commandments, and expand the foundation for investors to build their financial future.