Monday, February 26, 2007

101 Things to Know About Investing
The following series is a compilation of some of the smartest and most common sense rules of investing that I have seen put in one place at one time. The original article was published in Money Magazine March 2004. The headings are verbatim from the article The commentary is mine.

1) You have an advantage over the pros.
Professionals must think short term to compete against the market quarter by quarter. Individuals can focus on the long terms Benjamin said long ago.

2) Asset allocation is more important than trying to find the next Microsoft.
Over the long haul stock and bond returns will track the averages. Your view of the future will dictate how much you commit to each area. The fine-tuning comes later.

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