Frances leaves us with her 10 investing rules as she moves on to her next chapter
My 10 investing rules
In no particular order.
1) Remember that the market doesn’t know and doesn’t care who you are. It isn’t a personal thing when it goes down after you buy or up after you sell. Don’t be emotional about your investments. The markets do not care.
2) When everyone is on one side of the ship, more often than not it is wise to go to the other side.
3) Listen to opposing points of view – positive and negative. If you only listen to those that agree with you, you’re likely to find yourself on the wrong side of the investing ship. Arguing against your own point of view however makes your thesis stronger and makes you a better investor.
4) Think and then think again. When facts are presented, they are very compelling but often times when they are viewed from a different angle, they may be less so. This is especially true with headlines and statistics (be especially wary of graphs where scales between two items aren’t equalized).
5) If you haven’t made an investing mistake or five, you’re not learning. But do cut your losses early.
6) Do your homework, know what you own and understand your investments. It is your money (not your advisor’s money).
7) Remember markets can only react to the same news so many times – three is about the maximum in my experience. By then, both good and bad is discounted and something new has to come along. This is most true for bad news.
8) Periodically re-read Bob Farrell’s 10 investing rules. There is at least one of his rules that is applicable to the current environment, whatever that environment is.
9) If there are 42 analysts covering a stock and 42 buys – don’t buy it. And finally
10) watch those alligator patterns. When the jaws of performance get so wide for one equity, security, currency, it is just about time for them to shut. Always be careful out there and stay tuned into BNN.
I have read “Dance to the Music of time” at least three times. It is on my e-reader now, and I may take another run at it this summer. It is a series of 12 books written by Anthony Powell that spans the lifetime of Nick Jenkins from his junior years at public school in England through Oxford, the school friends he had and their ups and downs from just after WWI through the early 1960s.The title comes from a painting of the same name depicting the four seasons of life. What always strikes me about the characters in the book are the coincidental re-meeting of, in particular, Widmerpool, a bespectacled oddball character who never quite fits in but always seems to show up again and again. And that is what saying goodbye is like — the ending of a chapter where you have grown very accustomed to the characters, their lives, their peculiarities as well as their strengths. They are a part of you while reading, they stay with you after and periodically, coincidentally they show up again. That is how I shall say goodbye to my own dance to the music of this BNN time. And I enter my “next chapter.”
Who is Frances?
A personal Goodbye