The 10 Principles of Investing
- To increase your odds of success, lengthen your holding period.
2. Before investing, make your personal finances solid. Income/expenses - appropriate insurance - spending aligned with your values - emergency fund - job - taking care of your health - personal pension - education - mortgage - retirement funds - irregular expenses, etc.
3. Assets with high risk in the short term are safe in the long term, and the reverse is also true.
5. If you have the right mindset, building wealth is only a matter of time.
"Oh! It's a profit."
"Oh! I can buy more."
6. 99% of the wealth-building process comes down to these three key things.
"Save more"
"Invest more correctly"
"Wait longer"
8. If you don't sell what you hold, the portfolio will rebalance itself.
9. Look at the business, not the stock. (This is why you should track it and buy whenever earnings are released)
10. To make money, you ultimately have to invest.
4. In the early stages of investing, the savings rate is everything. But over time, investment returns become everything. You need to shift what you focus on as time goes by.
7. Dollar-cost averaging frees you from having to time the market.
Topics: stocks
Category: Scrap/Article
Source: https://twitter.com/BrianFeroldi