The Zurich Axioms: The Rules of Risk and Reward Used by Generations of Swiss Bankers by Max Gunther

My summary of the book The Zurich Axioms: The Rules of Risk and Reward Used by Generations of Swiss Bankers by Max Gunther. The book started my speculating and investing career - the title is slightly sensational but it contains a great framework to start speculating.
The book contains 12 major axioms and 16 minor axioms - they can be found below:
Axiom 1: ON RISK
Minor Axiom I: Always play for meaningful stakes.
Minor Axiom II: Resist the allure of diversification.
Axiom 2: ON GREED
Minor Axiom III: Decide in advance what gain you want from a venture, and when you get it, get out.
Axiom 3: ON HOPE
- Minor Axiom IV: Accept small losses cheerfully as a fact of life. Expect to experience several while awaiting a large gain.
Axiom 4: ON FORECAST
Axiom 5: ON PATTERNS
- Minor Axiom V: Beware the Historian's Trap.
- Minor Axiom VI: Beware the Chartist's Illusion.
- Minor Axiom VII: Beware the Correlation and Causality Delusions.
- Minor Axiom VIII: Beware the Gambler's Fallacy.
Axiom 6: ON MOBILITY
- Minor Axiom IX: Do not become trapped in a souring venture because of sentiments like loyalty and nostalgia.
- Minor Axiom X: Never hesitate to abandon a venture if something more attractive comes into view.
Axiom 7: ON INTUITION
- Minor Axiom XI: Never confuse a hunch with a hope.
Axiom 9: ON RELIGION AND THE OCCULT
- Minor Axiom XII: If astrology worked, all astrologers would be rich.
- Minor Axiom XIII: A superstition need not be exorcised. It can be enjoyed, provided it is kept in its place.
Axiom 9: ON OPTIMISM AND PESSIMISM
Axiom 10: ON CONSENSUS
- Minor Axiom XIV: Never follow speculative fads. Often, the best time to buy something is when nobody else wants it.
Axiom 11: ON STUBBORNNESS
-Minor Axiom XV: Never try to save a bad investment by "averaging down."
Axiom 12: ON PLANNING
-Minor Axiom XVI: Shun long-term investments.

[@Value_Pilgrim]

Thank you sir. I will binge watch your videos today. Love your excellent summarization. Happy to find some intelligent videos on these topics.

[@FindependenceChannel]

Happy you like them!

[@julliekoning]

Thanks, cool summary. Is reading the book worthwhile? Or is this basically it?

[@FindependenceChannel]

Hi julliekoning, in my opinion the book can be summarised as this. Most chapters contain examples and stories to make the axioms clearer. If you remember something better through reading it still might be worth it - but I feel that this is sufficient.

[@treelee2668]

Great explination for those whose English is 3rd language

[@userape]

wdym