Investing rules for graduating students and young professionals.

On request from @syedanusali

Here is a list of short sometimes cynical rules that I put together for my portfolio optimization class at @ibakarachi a few years ago.

Investing rules for dummies

a) Avoid taxes and fees
b) Invest in what you understand
c) Invest in trades that compound
d) Invest in ideas that should be obvious but are not
e) Listen and be open to changing your mind
f) Educate and upgrade your parser
g) Understand incentives

a) Avoid taxes and fees.

Capital gains tax, taxes on dividends and fund management fees eat up into returns and often capital over 35 years.

If you can identify ideas, trades or models that can lower, reduce or eliminate both, you can save 3x more. Yup 300% more over 35 years.