The 12 Golden Rules of Investment.

Posted on 06/24/10 in General, No Comments

I saw this recently and thought if more than worth repeating, these are rules to live by.

The 12 Golden Rules of investing.

  1. Your Career Provides your wealth, so it might be a good idea to either make a lot of money or make investing your career.
  2. Don’t assume you can replace your wealth.
  3. Recognise the difference between investing and speculating.
  4. No one can predict the future.
  5. No one can move you in and out of investments consistently with precise and profitable timing.
  6. No trading system will work as well in the future as it did in the past.
  7. Don’t use leverage.
  8. Don’t let anyone make your decisions.
  9. Don’t ever do anything you don’t understand.
  10. Don’t depend on any one investment, institution or person for your safety.
  11. Create a bulletproof portfolio for protection.
  12. Speculate only with money you can afford to lose.

Isn’t that an interesting list?

Did you spot one or two items that made you less than comfortable?

Like number 7 “Don’t Use Leverage”? I’m not sure If I totally agree with that one but I sure agree with most of these.

They sure make great reading and give good cause to look closer at our own investing and risk profile, but I also think that it’s probably rather easy to write on of these list’s in a post recession market.

Something about putting the ambulance at the bottom of the cliff after the house has bolted.

Warm Regards

Steve Goodey

List reproduced from Fail-Safe Investing By Mr Harry Browne

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