a unique solution—‘risk parity’—for achieving a stable return amidst economic turbulence.
- There is no free lunch
- The more the promised return the higher the risk
- Buy indexes, not individual securities
- Don't try to master the market
- Diversification is a big deal
- Be disciplined
Your strategy should be consistent and unaffected by short-term swings, whether positive or negative.
Specific risk - buy an index rather than individual stocks
Beta investing - passive iinvesting
Diversification:
as many asset classes as possible in your portfolio.
Be disciplined
Rudyard Kipling
Poem "If"
"meet with Triumph and Disaster / and treat those two imposters just the same."
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