Diversification is crucial for long-term investment success.
Proper diversification, that is.
Today, how to better diversify your investment portfolio. (more…)
No wonder investing is confusing for the average investor.
Many investors take a “follow the pros” strategy. Whether that means watching the business networks, tracking Warren Buffett, or subscribing in to investment newsletters, these investors invest based on what “experts” tout.
Often though the advice of one professional runs contrary to the next. What to do?
I saw a good example of this in Yahoo News. (more…)
Defining a target asset allocation is critical to investment success.
Equally important is ongoing portfolio monitoring and periodically rebalancing the actual asset allocation back to your target allocation.
The Wall Street Journal has a good article on strategies for rebalancing investment portfolios.
Worth reading in its entirety, buy I want to highlight a few points. (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.
Benjamin Graham mentored Warren Buffet and is considered the founder of value investing.
Today, a quick summary on Benjamin Graham and his three key principles for value investing. While they may not turn you into the next Warren Buffett, these investment tips will make you a better investor. (more…)
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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