Behavioral Traits That Are Killing Your Portfolio Returns
https://www.zerohedge.com/personal-fina ... io-returns
He warned investors to be wary of greed and fear, to prioritize caution to avoid losses and accumulate gains slowly but surely.
People should not believe any investment is destined to be profitable, he warned.
The veteran said it is important to diversify one's risks, saying investors should allocate funds to various products and regions.
Whenever we “open the hood” to analyze a business, we look for key components, such as:
1. Consistent earnings and dividends
2. Overall strength of its balance sheet
3. Primary competitive advantages
4. Overall strength of its management team.
They’re all indicative of future earnings power. So a truly quality company will boast all four aspects, no matter the economic conditions around it.
All you need to do is buy an S&P 500 index fund, such as the Vanguard S&P 500 ETF (VOO), and you can expect better long-term returns than most active mutual funds.
Buy high, sell low
Asset allocation
Index fund
Trend-following approach
Emotional investing
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