The 15 Minute Rule

Back in the middle of the Covid crisis, there was lots of movements in the market: things were completely changing overnight. Stores that were once open were suddenly forced in shut down. Consumer behavior was shifting from in-person to online shopping. Stocks were moving up and down.

Everything was changing in the markets.

You would have expected investors to have spend countless hours carefully thinking through their investment decisions. After all, the markets were changing during Covid, so there must have been countless varibles to consider. Plus, one small mistake could wipe out your investment given that companies were going bankrupt left and right.

But the truth is that I didn't spend much time thinking through any of my investment during the pandemic. I spent no more than 15 minutes researching The Cheesecake Factory, and I spent no more than a few minutes researching Meta.

And guess what? Both investments have outperformed the market by well over 100%.

The truth is that you don't need to spend much time thinking through investment decisions. If an investment decision is attractive, it's going to be clear within the first few minutes of researching the company.

Take a look at these companies: Apple, Amazon, and Starbucks. It doesn't take any more than a few minutes to conclude that these are wonderful businesses. Not 1 months. Not 2 weeks. Only a few minutes.

Warren Buffett once said, "if we can't aim to make an investment decision in 5 minutes, we aren't going to make it in 5 months." That's very true. If a company is truly an attractive investment, you'll know within the first few minutes of researching it because it will stand out from the crowd. You won't need countless hours to research it.

I always aim to buy a stock within a. few minutes of researching it. Why? If it's truly an attractive investment, it will be clear within the first few minutes of researching it.