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  • MJG January 2016
  • Ted January 2016
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  • @davidmoran: Excellent article ! For those who might have missed it, Jonathan Clements was Chuck Jaffe's guest on his Money Life Show.
    Regards,
    Ted
    http://www.mutualfundobserver.com/discuss/discussion/25182/chuck-jaffe-s-money-life-show-guest-jonathan-clements/p1
  • Hi Guys,

    Davidrmoran, thanks for the Index Card investing NY Times article. It prompted fond memories of Presidential candidate and financial advisor Harry Browne. He also was the founding father of what is now Michael Cuggino’s Permanent Portfolio family of mutual funds. I miss him; he passed away in 2006.

    I had the good fortune of meeting him several times at the Las Vegas MoneyShow in the 2000s. The index card discussion refreshed my memory of this calm, common sense, savvy investment advisor and book author. Harry only came armed to his presentations with a single 3 X 5 index card. It was completely covered (both sides) with small handwritten notes. I posted in MFO about Harry and his Index Card in 2011.

    Browne published his “Fail-Safe Investing” book in 1999. The Fail-Safe book is a distillation of his accumulated investment learning and philosophy.

    Fail-Safe Investing does not contain any deep market secrets nor does it delve into complex analysis methods. It likely would disarm a reader with its simplistic approach to investing. It might be helpful to re-familiarize ourselves with his, and most likely many of our favorite investment axioms, during this volatile market cycle. Here is a listing of Harry Browne’s 17 investment rules.

    1: Build your wealth on your career.
    2: Don’t assume you can replace your wealth.
    3: Recognize the difference between investing and speculating.
    4: Beware of Fortune-Tellers.
    5: Don’t expect anyone to make you rich.
    6: Don’t expect a trading system to make you rich.
    7: Invest only on a cash basis.
    8: Make your own decisions.
    9: Do only what you understand.
    10: Spread the risk.
    11: Build a bulletproof portfolio for protection.
    12: Speculate only with money you can afford to lose.
    13: Keep some assets outside your own country.
    14: Take advantage of tax-reduction plans.
    15: Ask the right questions.
    16: Enjoy yourself with a budget for pleasure.
    17: Whenever you’re in doubt, err on the side of safety.

    I’m not sure if Browne’s single index card contained all 17 rules, but given his small, dense writing style, all 17 of these words of wisdom could have been listed. His rules are similar to those reported in the NY Times piece. As the article summarized, investing need not be complex, but it is also not easy.

    Thank you again for the posting.

    Best Wishes.
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