Showing posts with label Investment Rules. Show all posts
Showing posts with label Investment Rules. Show all posts

5 June 2014

Do you rely on 'models' to predict market moves?

You should if you think that a model that is able to explain 36% of price moves is a useful tool. I for my part would be sceptical. Remember, investing is part science, part art otherwise we would all be millionaires (or billionaires to bring this up-to-date). As the author of this particular model was a long-serving staffer at the Value Line Investment Service let me mention that I think that publication is the best value product in the market for investment services. Not perfect but for the price it beats all expensive 'research' departments that are housed in Brokerage and Fund Management firms.

14 April 2014

A 90/10 rule that protects all us two-brain investors

How to avoid being tempted into reckless investment decision (MarketWatch).

Can your ‘money-losing behavior’ be cured?

Lessons from a new study on why investors make bad decisions (MarketWatch).

11 April 2014

Dollar-cost averaging - useful in combination with index funds

Dollar-cost averaging may not be a 'sexy' investment strategy but it may suit conservative long-term investors that realise that they will never be able to 'time' the market perfectly. As equities (hopefully) have an upward bias an investor should be able to generate a satisfactory return - especially if he does not focus on stock-picking (this could lead to pick the wrong stocks that do not participate in the overall market trend). The same strategy can be applied to bond investments. The main difference would be that the investor could in addition vary the maturity term of his bond investments, i.e. longer maturities in high interest environments and vice versa.

30 January 2013

10 Common Investing Mistakes

10 Mistakes that turn Investors into their own worst Enemies (Business Insider)

22 October 2012

Are you destroying your Wealth?

An interesting new study documents the mistakes that individual investors make when they invest. Unfortunately the professional investment advisers more often than not commit the same errors and also need to be closely supervised to avoid unpleasant surprises.

26 July 2012

Don't complain - do your research!

Too many investors - even professional money managers who should know better - chase fads and overpay for their investments. A quick look at the key numbers behind the Zynga should have sent out warning signals and it is pointless to complain about insiders who unloaded more than half a billion dollars worth of stock in a secondary offering last April.

27 January 2012

The Twelve Axioms of Investing

Quite interesting summing up of important investment rules. Nothing really new but the obvious cannot be repeated often enough.