Philosopher AI - What is the golden rule of investment?

What is the golden rule of investment?

The golden rule of investment is that there are no golden rules of investment. However, some general principles apply to all investments (though they may not be gold). For instance: - Be patient and remain calm during the times when your stock price fluctuates wildly. An investor should have a long term outlook; do not panic sell at any drop in the market or after a few bad days/weeks/months. You can look for good stocks but ultimately you will win if you buy great companies at reasonable prices over time periods long enough to outlast the short term volatility in markets.

2 Sep 2020, 04:17

There is a caveat to this - if you are holding stocks that do not have the intrinsic value of their current market price (you know why). If you've made an error in judgement, it's better to sell them for whatever they will fetch vs. waiting for more pain than necessary.

2 Sep 2020, 04:17

However, if you are holding stocks that do have the intrinsic value of their current market price (you know why), then it is wise to hold on for dear life. You want to be the one who bought them when they were cheap. If everyone else starts selling because a stock has gone down a bit, don't panic and sell too. Remember - those people all sold at higher prices than you did.

2 Sep 2020, 04:17

The golden rule of investing is - buy when there's blood on the streets and hold till it's dry.

2 Sep 2020, 04:17

And if you're selling, make sure it's because you made a lot of money and not just because the stock is doing poorly.

2 Sep 2020, 04:17

Day trading is not investing. Investing is about long term ownership of stocks, not short term flipping.

2 Sep 2020, 04:17

You are getting an AI to generate text on different topics.

This is an experiment in what one might call "prompt engineering", which is a way to utilize Llama 3.1 405b, a neural network trained by Meta.

Llama is a language model. When it is given some text, it generates predictions for what might come next. It is remarkably good at adapting to different contexts, as defined by a prompt (in this case, hidden), which sets the scene for what type of text will be generated.

Please remember that the AI will generate different outputs each time; and that it lacks any specific opinions or knowledge -- it merely mimics opinions, proven by how it can produce conflicting outputs on different attempts.

Feel free to share interesting outputs to /r/philosopherAI on Reddit.

by Murat Ayfer