As usual, this is a good read. http://www.berkshirehathaway.com/letters/2017ltr.pdf Key take aways for me - 1. Investment is about buying the future of a business. It's not about trying to time the market through chart patterns and speculating on analyst's forecast. 2. Warren Buffett had a $1M bet with a hedge fund 10 years ago that no hedge fund can beat S&P over the long run. A hedge fund took up the bet and chose his favorite hedge funds. The bet ended in 2017. Totally no competition. S&P500 won hands down. http://www.businessinsider.sg/warre...s-results-of-hedge-fund-bet-2018-2/?r=UK&IR=T That to me is a proof that the best way for most of us to invest is long term as well as hold and forget (don't try to outsmart the market by going in and out of the market). Obviously this is not true for options trading though because options have expiration dates whereas stocks don't. I think what he said here is truly important. Market is NOT always rational. Seizing the opportunity when market price is way below market value is key to investment success. "A willingness to look unimaginative for a sustained period" - absolutely important but really hard to do. A mindset that is so important for us to remember during big sell offs ! 3. Draw down is a natural part of trading and investment. Even Berkshire had huge draw downs but despite these draw downs, Berkshire managed to return CAGR of >20% for more than 50 years. We must accept draw down as a fact in order to be in the business. Trying "too-hard" to avoid draw downs may result either in poor long-term performance or other unintended consequence. The important note is NEVER trade/invest on borrowed money. Key reason is that our minds will start playing tricks on us during rough times if we are trading on borrowed money. If we only trade money that we can afford to lose, we have a much better chance to stay rational during a sell off. 4. This is another good one - having more bonds in our portfolio doesn't mean safer.