Mad Money 8/29/25 | Audio Only

Investment Philosophy & Strategy - Investors need to understand their own objectives and risk tolerance before investing in individual stocks, aligning investments with personal financial goals [1] - The industry suggests allocating the first $10,000 to an S&P 500 index fund as a bedrock for the portfolio before picking individual stocks [2] - The industry emphasizes diversification by building a portfolio of five to ten individual stocks across distinct industries to mitigate risk [3] - The industry suggests investors should stay flexible and be willing to sell stocks when the original investment thesis is no longer valid due to changing business dynamics [3] - The industry highlights the importance of not falling in love with any stock and being ready to acknowledge mistakes and cut losses [5] Company Analysis & Due Diligence - The industry advises investors to do homework and understand a company's business model, revenue streams, and financial performance before investing [3] - The industry suggests investors should be able to articulate their investment thesis to ensure it makes sense [3] - The industry recommends investors to pay attention to what company executives say, especially during conference calls, but to remain skeptical and not blindly accept promotional statements [7] - The industry suggests waiting at least 30 days before buying a stock after a company announces a shortfall to allow the bad news to be fully priced in [7][8] Market Dynamics & Emotional Discipline - The industry warns against emotional investing, particularly the "if only" mentality, and advises investors to remain calm and avoid punishing themselves for mistakes [5][6] - The industry points out that the market is not always rational and stock prices do not always reflect underlying fundamentals, creating opportunities for informed investors [9]