Hi Guys,
Investing can be complex or simple. I prefer simple. To help nudge an investor towards the simple domain, it's good to have a set of short rules to guide an investor in that direction. Morgan Housel just published a set of 25 rules that provide that guidance. Here is a Link to those short, insightful rules:
http://www.collaborativefund.com/blog/short-investing-rules/A list with 25 units is too long to remember or apply. Not all these rules are equally useful to an investor. You get to pick and choose depending on your temperament, your experience, your personal biases, your age, and your wealth.
I especially like rules 3 and 16.
Rule 3 is "Plan on every plan not going according to plan.". So true.
Helmuth von Molke the Elder is quoted as saying:"no plan of operations extends with any certainty beyond the first contact with the main hostile force." The short form of that wisdom is "no plan survives contact with the enemy." Flexibility to plan and replan as the situation develops is critical to successful investing.
Rule 16 is "Read fewer forecasts and more history." Forecasts and forecasters are notoriously more often wrong than on-target. History is a reliable guide, especially in establishing extreme outcome likelihoods.
Please visit, enjoy, and apply Housel's short rules to enhance your returns, but more importantly to reduce your investment risks.
Best Regards
