"You have to be willing to lose to win."

First, let's define accuracy for our context.

Accuracy: When the stock that you bought and held over at least three years is beating the market averages.

David suggests we aim for 60% of our stock picks to beat the market averages.

Assuming 60% accuracy - 12 stocks will beat the market and 8 will not.

• 60% is a great goal, but you don't have to hit 60% to beat the market.

• 8 out of 20 investments will lose to the market. Some of them will lose almost all of their value.

• The beauty of Rule Breaker investing. When you find a true Rule Breaker, it can wipe out all of your losers combined.

The current performance of the Rule Breaker picks reveals their 4th best pick is up 4,266%. When you have a stock like this in your portfolio, it erases all of your losers. This is why you have to accept losing as a part of the process.

"You have to be willing to lose to win."

We intentionally take risk. That's the nature of Rule Breaker investing and how I think we maximize our returns.