Eight Commandments For Investor

Whatever the details of their strategies, successful investors have a few principles in common, says Andrew S. Clarke in `Wealth of Experience'

He lists these principles as `eight simple commandments', beginning with `save'.
Saving, the bedrock of a successful investment programme, is natural to some, but many have to work at it, explains Clarke. "Once the habit is ingrained in your budget (and mind), however, saving can be relatively painless."

The second diktat is to plan. This can be stated in plain terms at the start and then refined, with time and experience. "Make a plan, and you'll approach the task of investing with a sense of purpose and greater confidence," the author coaxes.

Third, learning, which can be through study, experience or a trusted professional.

Next, `diversify and allocate'; a failure to diversify can cause the greatest of disappointments. "Your mix of stocks, bonds, and cash determines both the returns you earn and the risks you experience. Successful investing means finding the right balance of risk and return."

Commandment five counsels you to keep emotion in check. "Fear and greed are the culprits behind many of the worst investment decisions. The financial markets provoke strong emotional responses that can undermine a sensible, long-term investment plan."

Sixth, monitor. "You don't need to obsess about your portfolio. In fact, that kind of intense focus is usually counterproductive." There are both simple and complex methods for monitoring your holdings, Clarke suggests. Using these you can "assess the progress of your investment programme and rebalance your holdings to match your target asset allocation."

Seventh, keep your costs down. Why? Because "low costs are the most reliable predictor of high returns."
Elementary, this may be, but oft ignored; for, "everyone wants high returns. Fewer people pay attention to costs… Cost and return are inextricably linked, a fact that big institutional investors have long understood."

Lastly, be smart about taxes. Explains Clarke: "Your goal should be to maximise your after-tax returns, not to minimise your taxes… It's smarter to earn $10 and write a $4 check to the tax collectors than to earn $5 tax-free."
Tips that work!

Contact us for real execution of these commandments, in right sense. Believe me you will benefit from our relationship as experienced by my present investors.
! ! ! Happy Investing ! ! !

Regards,
Zoher Doctor / Smart Money Inc.
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