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2006-10-09 06:11:08 · 3 answers · asked by Anonymous in Business & Finance Investing

3 answers

Doesn't that equate to "Buy & Hope?"

Here's another theory

Unified Theory of Everything Financial
Revealed in Dilbert and the Way of the Weasels
By Scott Adams

1.Make a will
2.Pay off your credit cards
3.Get term life insurance if you have a family to support
4.Fund your 401k to the maximum
5.Fund your IRA to the maximum
6.Buy a house if you want to live in a house and can afford it
7.Put six months worth of expenses in a money-market account
8.Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement
9.If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio

Check the bottom line: A portfolio with an asset allocation of 70% in Vanguard's Total Stock Market Index (VTSMX) is doing just fine, performing remarkably close to the S&P 500 index. Moreover, that simple two-fund portfolio is perfect for the vast majority of America's 95 million investors who are passive much as Adam's Dilbert character.

The truth is, most investors have little or no interest in Wall Street's casino action; all the time-consuming research, the sophisticated stock-picking tricks, the costly trading necessary to play in a market drowning in 10,000 stocks, 18,000 funds and more than 100,000 bonds. Most investors have jobs and kids as their top priority. Moreover, Dilbert's simple two-fund portfolio compares favorably with our other lazy portfolios.

2006-10-10 06:47:48 · answer #1 · answered by dredude52 6 · 0 1

1) If you cannot invest for 2-5 years period do not bother to invest for even 30 seconds. ... always go for long term investment
2) Buy the business not the shares.
3) Buy when everyone sells and sell when everyone buys,
4) Evalute the company and buy onlf if and only if u get the business at a discount... less than intrinsic value.
5) If you think economy would not see a strong growth always consider other options like bonds.

these are some of the most important things stated in Intelligent Investor by Graham

2006-10-09 06:23:41 · answer #2 · answered by MSFinances 2 · 1 0

1) Don't be the patsy. Invest with disciplined intelligence.
2) Operate as a *business* analyst. Ignore the noise.
3) Look for a big moat. Secures favorable long term prospects.
4) Exploit Mr. Market. Take advantage of market mispricings.
5) Buy at a reasonable price. Buy great biz @ fair $ vs. fair biz @ great $.
6) Insist on a margin of safety. Price you pay vs. value you get.
7) Know your limits. Buy only what you know.
8) Invest with "sons-in-law." People you like, trust, admire.
9) Only a few will meet these standards. So buy meaningful amount of its stock.
10) Avoid gin-rummy behavior. Don't buy if wouldn't own for 10 years.

2006-10-09 07:56:57 · answer #3 · answered by roger_v_kint 3 · 0 1

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