Universal Principles of Investing

First and foremost I should say that I'm new to BP with limited experiencing in Real Estate investments. I do feel like I'm on a journey and my hope is to scribble down some thoughts which some other newbies might find useful.

The thought that struck me recently on investing is how some core principles apply across a variety of smart investing. The sort of smart investment I speak of is not one based on speculation where you invest with optimism that the investment will increase in value and you cash out. This is very unpredictable as you might experience in the stock market. 

I find that value investing really gives me peace of mind and makes sense. Though value could be relative I think it still has a set of common reference points whether it is real estate, business or stocks.

2 principles stand out to me regardless of what sort of investment vehicle you choose with value investing

• Buying under value
• Prioritizing cash flow

It may seem like common sense, but you really know that you are hitting on a core principle when it crosses multiple domains. These ideas first became obvious to me as it relates to the stock market (seeking value and dividends) , but as I went through a lot of BP resources and other materials I see the same ideas apply. I hope to keep these in focus as I seek to execute these ideas in practice.

I would love to hear your thoughts on this topic.