Ten Commandments of Investing - An Overview

There are several universal principles affecting ourTorah. By asking friends familiar with other religions, I
everyday life, many of which we learned early in lifelearned the same Ten Commandments are found in
and take for granted, or even forgot. The laws ofthe Koran. In Buddhism a very similar list of ten actions
physics are a good example. We had to learn themlead to bad karma. This awareness gave me a far
while in high school and even memorize them, at leaststronger conviction that these are indeed universal
long enough to pass the exams. By the time summerprinciples.
vacation rolled around most students assumed theyKnowing the list of Ten Commandments is like
would never need them again. Unfortunately, some ofknowing the golden rule - necessary but not sufficient. I
those youths ignored these laws of physics, and thehad the opportunity to hear a series of 10 sermons on
results were fatal. Recall that centripetal force needsthe Commandments, which really raised my
to be equal to centrifugal force to keep an objectawareness of how important and profound these
from going in a straight line. That curve the youngprinciples really are. We certainly all know from the
drivers rounded, at a few miles per hour faster thanEighth Commandment that we should not steal. Yet a
the banked road was designed for, and they neververy high percentage of people take supplies from
lived to appreciate how deadly the lack of centripetaltheir work place, never even thinking that this is
force could be.stealing. After all they worked during 15 minutes of their
Fortunately, violating most of the universal principles welunch break today, so a pack of staples is hardly worth
learn do not have life and death consequence. Theseas much as the time they gave the company. In reality,
principles do however affect the quality of our livesknowing the list of 10 Commandments is merely a
and our relationships. We all learned the golden rule: dostarting point. The harder part is fully understanding
unto others as you wish others would do unto you.them and following them daily. As I often say - the 10
Much later in life I learned an even better rule - theCommandments are simple, but not easy to follow
platinum rule: treat others as they would like to beregularly.
treated. The platinum made me realize that I needed toAre there similar universal principles that apply to
keep learning my entire life. The lessons we learned ininvesting? There certainly are. They are the 10
school were necessary, but not sufficient to guide usCommandments of Investing. Unfortunately, just like the
our entire life.life principles, merely having a list of these 10
The Ten Commandments are probably the bestCommandments will not increase the value of your
known life principles. While growing up, I assumed theyportfolio or make you wealthy. The key is to truly
were Christian principles. I later realized that as part ofunderstand them and put them to use during each key
the Old Testament of the Bible, they are shared byinvestment decision.
the Jewish faith who refer to this book as as the