15 Essential Principles for Investing Success

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1. Follow principles: The 24 rules of investing are structured as "if-then" statements, implying that if you learn a principle, you can apply it repeatedly to make better decisions.
2. Don't buy something you don't understand: If it feels complicated or above your head, pass on the deal. Complete understanding of a deal reduces risk.
3. Don't rush into a deal: Take your time, and always have backup deals. This reduces pressure and allows for a more informed decision.
4. Invest for the long-term: Investing is about very long time horizons, not quick flips.
5. Diligence is key: No diligence, no deal. Get all the information you need to make an informed decision.
6. No model, no deal: Don't invest in something without seeing the projections and math behind it.
7. Don't do deals that cost peace of mind: If a decision will keep you up at night, don't do it.
8. Build your reputation: Only invest in things that build your reputation, not ones that might compromise it.
9. Track record matters: Past performance is a strong predictor of future performance. No track record, no deal.
10. Under-borrow: Always under-borrow, and never over-borrow, to reduce risk.
11. Ask stupid questions: Clarify terms, draw pictures, and seek examples to ensure you understand a deal.
12. Play the fool: Don't pretend to know more than you do. Instead, show that you're willing to learn and ask questions.
13. Be a limited partner: If you're not part of the general partnership (GP), you don't have a say in the deal.
14. No contract, no deal: Always have contracts in place for every deal.
15. Clear expectations are key: Contracts set clear expectations and prevent misunderstandings.
16. Don't do handshake deals: Written contracts are essential for every deal, as they provide clarity and protection.

Source: Get Rich With These 24 Investing Rules, Alex Hormozi