Successful investors all have one thing in common — a solid set of principles that allow them to (a) effectively build wealth over time with their at-risk capital and (b) avoid the emotional ups and downs that invariably come with being an investor.

Since the prices of financial assets like stocks and bonds adjust rapidly to new information and changes to perceptions of risk, it is very difficult to judge when a particular kind of investment will skyrocket, move sideways, or tank.