Diversification is crucial for long-term investment success.
Proper diversification, that is.
Today, how to better diversify your investment portfolio. (more…)
StreetAuthority looks at three essential investment rules of master investor, Peter Lynch.
Excellent investment advice for those wishing to invest in individual equities.
Unfortunately, I do not know any non-professional investors who could actually follow two of the three keys. Ah, the joys of investment advice. (more…)
How do investors use exchange traded funds (ETFs)?
Many investors utilize ETFs as a cost-efficient means to create long-term, well-diversified portfolios. But some investors use them for other investment tactics.
I like a general buy and hold philosophy for investing. Find solid, well-diversfied, low-cost investments (i.e., passively managed index funds), acquire by dollar cost averaging, and only adjust holdings to reflect your target asset allocation over time.
But can investors follow this model?
Or are we hard-wired to be traders? (more…)
As we move through 2012, uncertainty exists over global economic and financial markets.
Which countries’ economies will prosper? Or maybe the better question is, which countries’ economies will not completely crater in 2012? Which equity markets should investors consider? What should I do about all the market volatility?
There are many concerns out there for investors.
Some financial advisors advocate a buy and hold forever strategy for individual stocks.
They cite such successful investors as Warren Buffett, Benjamin Graham, and John Templeton as staunch believers in a buy and hold forever approach.
Or financial experts tout articles like “The 7 Best Stocks for a Lifetime”.
As a good friend whose birthday is this week would put it, “Complete foolishness, I say.”
And she would be right. (more…)
Behavioural finance (a.k.a. behavioural investing) examines how psychological factors impact an individual’s investment decisions.
One likes to imagine that investors are rational creatures, but that is often far from the case. I find behavioural finance very interesting in how it explains certain, less logical, investing actions.
Today a look at how investors often keep their losing investments longer than they should. (more…)
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