What are some of the important rules to keep in mind while building your Investment Portfolio, so that it absorbs the tremors in the Equity & Bond Market effectively. Have given below some of the important statements from the guru’s of the Investment World.
Diversify Adequately: Philip Fisher
An Investor should always realise that some mistakes are going to be made and he should have sufficient diversification so that an occasional mistake will not prove crippling. However, beyond this point he should extreme care to own not the most, but the best.
Avoid Timing: Peter Lynch
For more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.
Stay away from Leverage: Warren Buffett
I have seen more people fail because of liquor and leverage – leverage being borrowed money. You don’t really need leverage much in this world. If you are smart, you are going to make lot of money without borrowing.
Choose Process over Outcome: Michael Mauboussin
In activities where luck plays a larger role, skill boils down to a process of making decisions. Skill shines through only if there are a sufficient number of decisions (over a period of time) to weed out bad luck.
Practice Inactivity: Thomas Phelps
To make money in stocks, you must have vision to see them, the courage to buy them and the patience to hold them.
Choose FundWallet: R♥Vi
Last but not the least, choose someone who is experienced in vast range of products that are available in the investment Universe. Your partner in progress should possess more knowledge through experience than through qualifications.
Happy Investing!
RaVi
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