List of Investment Mantras

Finance and Investing

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venkataramanan
Professor, India

List of Investment Mantras

Let's collect a list of investment mantras here!
If possible, let's also add the circumstances / market conditions that make them valid (or not).
1. "When confident, concentrate; when doubtful diversify". When is this considered a sensible advice?
2. "Don't put all your eggs in one basket". In what kind of circumstances is this a smart strategy?
3. "Buy at bottom + 1 and sell at top -1". Is this a good strategy? If not why? If yes when?

  Vakhtang Kelbakiani
Student (University), Georgia
 

Investment Mantras: 4. Keep your Eyes Open - a Mantra Worth Keeping in Mind

4. "Keep your Eyes Open. Base your theory on facts. Don't filter facts to suit your your theory".
I found this one in an investment book. Says that you should keep digging and even one deviation from your theory can be a valid reason to make a new assumption and a new theory.
The investor faces a time versus safety dilemma.

  Hijab Naqvi
Student (MBA), Pakistan
 

On #2: Don't Put All your Eggs in One Basket

Don't put all your eggs in one basket is a particular smart strategy when the company's financials are fluctuating and you are not sure about the company's profitability trend in the future, or in the...

  venkataramanan
Professor, India
 

On #2: Don't Put All your Eggs in One Basket

The above sentence puts in a nutshell the concept of diversification in order to reduce one's risk....

  michael cook, United States
 

5. Don't Fight the Fed

This is a mantra, a "slogan" if you will, not a strategy. I can't think of a situation in which an investor would want to "fight" the Fed....

  venkataramanan
Financial Consultant, United States
 

Taxation Mantra (Personal & Business): Pay and Forget

As far as taxes are concerned "Pay & forget" is a better maxim than "Save & suffer", due to stress. The advantage is that the time spent to think of and pick up loop holes most of the time leads to l...

 

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Finance and Investing



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