FASHION IS MADE TO BECOME UNFASHIONABLE.- Coco Chanel ... Or, as the legendary financier Sir James Goldsmith said: "IF YOU SEE A BANDWAGON, IT'S TOO LATE!" Don't follow the crowd. Develop you own well thought out investment strategy and follow it.
PERFORMANCE COMES AND GOES, BUT COSTS ROLL ON FOREVER. - Jack Bogle. Controlling management costs in your investment may make the difference in a nice profit or a loss when you dispose of the investment. The profitable investor is the one that manages cost over the hold period so that those lofty sale values we project at acquisition may come true at dispositon. Buy low, sell high is only part of the story. Watch costs as closely as you watch (project) appreciation.
The real key to making money in stocks is not to get scared out of them - Peter Lynch. Nobody knows when markets will turn. Use advice from the best professional you can identify. Invest in real esate or stocks for quality and the long term. There is a time to sell but it is hard to recognize it. With all your learning, gain wisdom.
Practice Patience. "It never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!" - Edwin Lefevre. - One study in stock trading indicated that those who traded least earned seven, repeat seven, percentage points a year more than the most frequent traders. Sometime it is best to just "hold 'em."
"The Best Way To Own Common Stocks Is Through An Index Fund." - Warren Buffett. Don't try so hard. If the "Greatest (stock) Investor of Our Times" believes that index funds are superior for most investors, should you? The top real estate investors still say the keys to profitable real estate investing are right price, right location, right leverage and right timing. If it works, just do it.
It's The Portofolio, Stupid. - Asset Allocation ... is the overwhelmingly dominant contributor to total return. -- Gary Brinson, Brian Singer and Gilbert Beebower. Adopt a balance of investments in securities, real estate, bonds and liquid assets and stick with it.
