Sunday, December 16, 2018

8 BIG IDEAS FROM ‘ THE NEW COFFEEHOUSE INVESTOR ‘

Dec. 16, 2018

Introduction


I like to get some ideas from the book called "Coffee house investor". Here is the article.

I always have time for Principles 


The three principles of investing
  • Save for a rainy day. (Develop a long-term financial plan- how much you will spend and how much will you save)
  • Don’t put all your eggs in one basket. (Diversify in different asset classes-stocks and bonds.Bond percentage=age in years)
  • There is no such thing as a free lunch (Capture the entire return of each basket, or asset class, through low-cost index funds( because higher expenses will decrease future returns). Reinvest your dividends. Invest for the long term- decades, not years. Start as early as you can, which is, now. ).

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