I've noticed that many Longbridge community members don't seem to realize that the actions you take are related to the size of your capital.

The smaller your capital, the stricter the conditions for making a move. This is self-evident, just like in warfare, the tactics for an army of 100,000 are different from those for 800.

So, you can't just see Warren Buffett or some influencers make a move and impulsively follow their trades with all your money. They invest 1 million, you invest 1 million. Their 1 million can be recouped in a heartbeat, but your 1 million represents half a lifetime of savings. They can be stuck for 10 years without a problem, but you'll be desperate after just 1 year.

Always assume the stock price could fall further. Always have a Plan B.

That's why dividend stocks are the most beginner-friendly investment targets. Buffett said dividends are the ultimate exit strategy. For a stock with a 5% dividend yield, even if it halves after you buy it, as long as the dividend coverage is good and the dividend isn't cut, you'll break even in ten years just from the dividends. Moreover, dividends grow, and you can further reduce your holding cost through options strategies and dividend reinvestment, making the actual break-even period even shorter.

Take $Unitedhealth(UNH.US) for example. Without that 3% dividend, I might not have held on through the middle. Therefore, I'm more cautious with stocks that don't pay dividends, like $Paypal(PYPL.US), $Fiserv, Inc.(FISV.US), and $Duolingo(DUOL.US). You need to leave a much larger margin of safety.

$Unitedhealth(UNH.US)$Domino's(DPZ.US)$Fiserv, Inc.(FISV.US)$Paypal(PYPL.US)$Duolingo(DUOL.US)$Trade Desk(TTD.US)