Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
While the stock market is riddled with uncertainty, certain tried-and-true principles can help investors boost their chances for long-term success. Here are 10 fundamental concepts every investor should know:
“Peter Lynch famously spoke about "tenbaggers"-investments that increased tenfold in value. He attributed his success to a small number of these stocks in his portfolio. But this required the discipline of hanging onto stocks even after they’ve increased by many multiples ...” Rule #11 - Recognize that you’re not Peter Lynch - not even close.
Aside from treating investing as if playing in a casino, this is a pretty thoughtful article. I never could get my head around momentum investing - which the article tends to support. I realize it works for some. But locking-in big gains, ISTM, is a viable alternative.
I’m willing to take what the market offers - based on an allocation model appropriate for place and time in life. Those singles and doubles add up over time. When I can find an extremely depressed area that nobody wants to own, I’ll make a small wager. In today’s hot market, those opportunities are rare, if they exist at all. Last time such a wager worked was with PRLAX several years ago, which I snagged bottom fishing and released a few months later.
Final thought, Who was it that said: “Rule #1: Don’t lose money?”
Comments
“Peter Lynch famously spoke about "tenbaggers"-investments that increased tenfold in value. He attributed his success to a small number of these stocks in his portfolio. But this required the discipline of hanging onto stocks even after they’ve increased by many multiples ...”
Rule #11 - Recognize that you’re not Peter Lynch - not even close.
Aside from treating investing as if playing in a casino, this is a pretty thoughtful article. I never could get my head around momentum investing - which the article tends to support. I realize it works for some. But locking-in big gains, ISTM, is a viable alternative.
I’m willing to take what the market offers - based on an allocation model appropriate for place and time in life. Those singles and doubles add up over time. When I can find an extremely depressed area that nobody wants to own, I’ll make a small wager. In today’s hot market, those opportunities are rare, if they exist at all. Last time such a wager worked was with PRLAX several years ago, which I snagged bottom fishing and released a few months later.
Final thought, Who was it that said: “Rule #1: Don’t lose money?”
Derf