How to Make Money: Casson’s 12 Rules

1️⃣ Invest only in what you understand.
Never assume that any business you invest in will automatically bring profit. Those offering you an investment opportunity usually pursue their own interests, which often conflict with yours.

2️⃣ Never invest under pressure.
If someone persuades, manipulates, or rushes you — it’s because they want to benefit at your expense. Remember: no one can deceive or pressure you without your permission. Trust your intuition — if something feels wrong, it probably is.

3️⃣ Make money from ownership, not from ideas.
Casson emphasized that ownership has intrinsic value — it exists today and will exist tomorrow. Property can be sold, rented, or mortgaged. Plans and projections, no matter how brilliant, are worth nothing until they’re turned into real assets. Only the very rich can afford to invest in ideas — they have other income sources to cover failure.

4️⃣ Invest in what you can later sell.
To avoid your purchase becoming “dead weight,” remember:

• Your attitude toward the item may change, and you might want to get rid of it.

• The price you paid depends on demand, not intrinsic value.
  The rarer the item, the harder it is to sell. Common assets are much easier to liquidate.

5️⃣ Always take your profit.
In business, the main goal is profit. If you regret not selling today, you’ve already lost tomorrow’s earnings. Unused opportunities turn into missed profits. Be decisive — take profit when it’s available.

6️⃣ Listen to your banker.
Finance is a tangled web that even the smartest people can’t fully unravel. Bankers, however, live and breathe money — they understand financial systems better than most. Their advice is often worth taking.

7️⃣ Buy when prices fall, sell when they rise.
A simple rule, but one that few have the patience to follow. Discipline and timing are key to financial success.

8️⃣ Keep your money moving.
Capital in motion creates profit. To grow your wealth without borrowing, increase the speed of its circulation. Learn to sell effectively — it’s better than paying interest.

9️⃣ Borrow only what you can invest.
True entrepreneurs aren’t afraid of reasonable risk. Borrowing for productive investment can multiply wealth, while idle money earns nothing. Combine capital with intelligence — that’s where profit comes from.

🔟 Borrow for growth, not for show.
Many businesses collapse because they confuse expansion with vanity. Growth means developing production or sales; showing off means wasting resources to impress others.

11️⃣ Never lend money.
It brings neither profit nor gratitude — only lost opportunities. Instead of lending, put your money to work for yourself.

12️⃣ Watch industries and price cycles.
Every market experiences ups and downs. Buying shares of the best company in a declining industry can yield high profits once the market rebounds. Timing and observation are everything.

💡 Knowledge of business success is worthless without action.
So act — wisely, decisively, and consistently.