The Focus Investor's Golden Rules

1. Concentrate your investments in outstanding companies run by strong management.
2. Limit yourself to the number of companies you can truly understand. Ten to twenty is good, more than twenty is asking for trouble.
   
3. Pick the very best of your good companies, and put the bulk of your investment there.
4. Think long term: five to ten years minimum.
5. Volatility happens. Carry on.

(Source:The Warren Buffett Way by Robert G Hagstrom.)