Some Great Investment Advice I've Learned Over the Years

1) Run against the herd. When people are running away from it, buy it. When people are running towards it sell it or hold it - but never buy. Would you willing wait until something is no longer on sale before you purchase it? I know there are people that sh*t money and then choose to buy clothes at Lord & Taylors or Saks instead of Target or Burlington but it's still kinda dumb. Obviously do your research ahead of time, making sure that they are great companies with a long track record or at least a great future P/E ratio and always... I repeat: ALWAYS invest for the long term.

More Simply Put:
a) research the company - it's history, it's board, it's vision, it's P/E and it's viability
b) always buy low
c) always sell high (but preferably hold)
d) focus on the LONG term


2) Ignore the daily index results and stock/bond fluctuations on the financial news programmes and networks. Most of it is meaningless nonsense. This is a marathon, not a sprint. There is no get rich quick formula in investment. There is blind luck of course, but so is the lottery and getting hit by lightening.


3) For God's sake before you get too close to retirement start to transfer those stocks and equity into bonds, securities and cash. Don't get caught in the fate of most of today's retirees where your stocks and real estate are worth a fraction of what they were a few of years ago just when you are no longer taking in income.


4) DIVERSIFY! DIVERSIFY! DIVERSIFY!
Try to allocate your funds in as many different forms, sub-categories and risks of investment diversification as you possibly can. Stocks, bonds, treasuries, real estate, cash, precious metals, commodities, high risk, medium risk, low risk, long term, short term, domestic, international, DOW, Nasdaq, S&P, energy, tech, services, medical, pharmaceutical, retail/restaurants/hotel, industrial, chemical, green tech, entertainment... etc. That way when some sectors start to plummet others will rise and it will all ultimately balance out. Historically the entire economy always grows and recovers. You just have to not have all your eggs in one basket, or even in only 10 baskets - but in a 100 baskets if possible.


5) A 401k (but only up to the maximum company match) is almost as good as FREE money. Not having any credit card debt, loans or a mortgage with the resulting interest charges is a better return than ANY investment. A ROTH IRA will be tax free when you go to withdraw from it after retirement age at what will almost assuredly be a much higher tax bracket. Three no-brainers. 'nuff said.