Warren Buffett, one of the world’s most successful investors, famously claimed that the most important quality for an investor is temperament, not intellect. To be successful, you need to stay calm and rational during the market’s boom and bust cycles and avoid falling victim to the market’s herd instincts.
Even during dull market days, it takes
Continue reading Have the Right Temperament for Investing
Market timing makes more sense with individual stocks. Three out of four stocks move in the same direction as the market. And a stock can dart way above or way below the market average.
Failing to trade in step with the market can be ruinous to those not committed to keeping losses small. A stock can
Continue reading Volatility – Market Timing – Buy and Hold
Money magazine quotes Susan Byrne, founder and chairman and chief investment officer of Westwood Management, who states:
“We make an annual appointment, rebalance, and then I don’t look at my 401(k). I don’t worry about it when it struggles, and leaving it alone and keeping it diversified has helped it grow nicely, even though we’ve
Continue reading Staying the Course – the Phase between Asset Allocation and Rebalancing
A key element of your investment strategy is to “stay the course”. Inherent in this phrase is an assumption that you are on a course and a plea that you not deviate from it. So it is with investing. It’s important that you have a course and that you stay on it.