16 Rules for Investors to Live By - Part 1 (...so 8)
[caption id="attachment_1417" align="alignleft" width="300"] MORGAN HOUSEL[/caption]
The December 8th Wall Street Journal contained several nuggets of investing wisdom from columnist Morgan Housel, in his article “16 Rules for Investors to Live By”. I especially like numbers 5, 10 , 13 and 15. Take time to ponder the truth underlying all sixteen in light of your own investing experience. Your portfolio may thank you later.
8 Rules for Investors to Live By
- All past market crashes are viewed as opportunities, but all future market crashes are viewed as risks.
- Most bubbles begin with a rational idea that gets taken to an irrational extreme.
- “I don’t know” are three of the most underused words in investing.
- Short-term thinking is at the root of most investing problems.
- Investing is overwhelmingly a game of psychology.
- Things change quickly—and more drastically than many think.
- Three of the most important variables to consider are the valuations of stocks when you buy them, the length of time you can stay invested, and the fees you pay to brokers and money managers.
- There are no points awarded for difficulty.
Check back tomorrow for the last 8 rules or see the whole article.
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Posted on Sat, December 20, 2014
by John Finley