10. Hedge Every Investment
“Welcome to Fight Club. The first rule of Fight Club is: You do not talk about Fight Club. The second rule of Fight Club is: You DO NOT talk about Fight Club! Third rule of Fight Club: Someone yells “Stop!”, goes limp, taps out, the fight is over. Fourth rule: Only two guys to a fight. Fifth rule: One fight at a time, fellas. Sixth rule: No shirts, no shoes. Seventh rule: Fights will go on as long as they have to. And the eighth and final rule: If this is your first time at Fight Club, you have to fight.”
—Tyler Durden (played by Brad Pitt) in Fight Club (1999)
The good news: We only have five rules! The bad news: Our rules are going take longer to explain.
The first Iron Rule of Buy and Hedge is to hedge every investment. ...