Oct 7 2008
12:41AM
EDT
Five Investment Principles
- There's no rush. If an asset is cheap today, it'll be cheap tomorrow. Think before you act.
- If an investment causes worry or stress, don't make that investment. You should be happy with your investments. Your gut is a good barometer of your risk appetite.
- There's no need to invest. If you don't want to take a certain risk, don't take it.
- Up markets generally last for a very long time. Down markets can last just as long.
- There are few things more valuable, in a liquidity-constrained down market, than dry powder. Consider the opportunity cost of investing now. Down markets afford you the luxury of being patient, and waiting for opportunities which you love.
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