Investing doesn’t need reinventing – just remember some rules

Successful investing is a product of joining many variables together. Many of which we can actually control such as the decisions we make, the risk we take and the investment rules and disciplines we follow.

Here are some of my favourite investing quotes that I keep handy and refer to. They are easy to understand but many investors find them a lot harder to stick to or follow.

1. Over the long run, prices revert to their mean and their fundamentals.

2. Don’t follow the herd. The herd applies optimism at the top and pessimism at the bottom.

3. The safest and most profitable investment is to buy when no-one likes it. Patient opportunism (waiting for bargains) is often the best strategy.

4. Time is your friend, impulse is your enemy. Don’t be captivated by the siren song of the market.

5. Buy assets that appear to offer an attractive return for the risk incurred and sell the asset when the return no longer justifies the risk.

6. Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands.

7. Bull-markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.

8. I have never heard of a forced buyer.

9. When searching and analysing investment ideas, individual curiosity and intellectual honesty is required.

10. The trick of being a successful investor is to sell when you want to, not when you have to.

11. Do not be fearful or negative too often because bear markets aren’t forever.

And finally

12. Do your homework or hire experts to help you.

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