Tips to Diversify Your Portfolio

Diversification is crucial for long-term investment success.

Proper diversification, that is.

Today, how to better diversify your investment portfolio.  (more…)

3 Essential Investment Rules

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.

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Are Investors Driven to Trade?

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…)

Vanguard 2012 Economic Outlook

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.

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There are many variables that make successful investing a challenge.

And one of your biggest foes may just be you.

What do I mean by this?  (more…)

Knight Kiplinger, head of Kiplinger financial media, created a nice asset management video.

8 Keys to Financial Security is exactly that. Tips for protecting your assets and growing wealth.

As per usual, I add my two-cents to Mr. Kiplinger’s wealth management recommendations.  (more…)

Is Buy and Hold Investing Dead?

Is the buy and hold investment strategy dead?

I have argued no in previous posts. There are many advantages for investors who utilize a buy and hold approach.

A short video from Vanguard nicely summarizes my position.  (more…)

Buy and Hold Forever Stock Strategy

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…)

Holding on to Losing Investments?

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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