The Fourth Law — Invest Only in Businesses That You Know Well and That Are Skillfully Kept

When you invest only in businesses whose business idea you can understand and whose management you know to be skillful, you can minimize the risk of losing your money. If you do not trust your judgment, seek help from experienced and wise advisors.


  1. Invest only in industries you know well.
    You should understand the industry to be able to evaluate whether the investment can make a profit.
  2. Invest only in businesses that are skillfully managed.
    Learn more about the management of the company to see if they can make the right decisions and bring profit to your investment.


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