Use this glossary to quickly decode investing language (moat, intrinsic value, drawdown, margin of safety) and connect each concept to real principles and decision checklists.

How to use this glossary

  1. Pick a term you keep seeing in filings, news, or earnings calls.
  2. Open the related principle pages to see how masters apply it in practice.
  3. Write a short definition in your own words, plus one example and one failure mode.
  4. Turn the concept into a rule you can follow when you review an investment.

Decision checklist

  • Do you understand the term well enough to explain it simply?
  • What would make the concept irrelevant for this company or industry?
  • Which metric or evidence best supports (or contradicts) the concept?
  • What mistake does this term help you avoid?

⚠️ Definitions can vary by context. Treat terms as lenses for reasoning, verify facts with primary sources, and avoid trading decisions based on buzzwords alone.

B

C

I

L

M

R

S

T

V

Glossary FAQ

Why do some terms have multiple definitions?

Investing terms often come from accounting, economics, and market practice. The same word can mean different things in different industries or time periods. Use the glossary as a starting point, then confirm the definition with the source context (filings, standards, or the author’s original wording).

How do I connect a term to a decision, not just a definition?

Pair the term with a checklist: what evidence supports it, what evidence breaks it, and what action it changes. For example, “margin of safety” should translate into concrete assumptions, valuation ranges, and a rule for when you will say “no”.

What is the fastest way to learn a new concept here?

Open the term, then jump to the associated principles and scenarios. Principles show the logic and tests; scenarios show the common mistakes and how disciplined investors respond when uncertainty is high.

Does KeepRule provide investment advice or predictions?

No. KeepRule is educational. It helps you structure thinking and build discipline, but it cannot guarantee outcomes. Always validate key facts yourself and consider professional advice when appropriate.

Explore All Principles

Browse 1,300+ investment principles from 26 legendary investors

View All Principles