Of All The Investment Strategies, What Would You Say Is The Best?
I love this type of question. But you may not get the answer you want.
There is an old saying: If you don’t know who you are, Wall Street is an expensive place to find out.
Another old saw: There are people with 20 years of investing experience and there are people with 20 one-year investing experiences.
Corollary: The best investment strategy is the one best suited to your temperment and goals, borne of continuous experience and mistakes.
The “best” investment strategy in the world is rife with risk if it exceeds your tolerance for risk. I have seen excellent investment plans go awry as investors, who were never really comfortable with the plan, sold down to their sleep level (i.e., where they could sleep at night) at precisely the wrong time. Conversely. I recall talking to an 80-year old lady after the crash in 1987. When I asked if she had sold any of her holdings, her reply was, “No dear, I never sell wholesale.”
Priceless.
Investing is a journey, one where the traveler spends years figuring out what investment approach works best over market cycles (any market cycle … real estate, stocks, gold, etc.).
Therefore, my advice, worth what you’ve paid for it, is to begin learning who you are and then finding the investment approach that best suits your temperment and knowledge.
This from Will Rogers:
“Buy when it is low, and when it goes up, sell it! If it doesn’t go up, DON’T BUY IT!”
Seriously, make sure you have covered all bases with a very conservative, tax friendly long term plan. Only gamble with that which you can afford to lose. Inform yourself diligently.
The tortoise outran the hare.
Dont put your eggs in one basket, and use common sense. Gold does well in bad economies. Invest in defence related companies during times of war etc. This is all common sense stuff. Personally I avoid investors because they get paid when you buy or sell a stock. You have to watch many investors becuase they like to “churn” your investments, so they enjoy the commission from you switching stocks.
Also figure out what type of investor you are – High risk, medium or low risk. Personally I am low to medium. Therefore I am guarenteed a return, even though it is less than a high risk stock.
There was once a study done with monkeys and a dart board. They did better choosing stocks than professional investors! Good luck and have fun.
I prefer long term fundamental investing. To each his own!http://www.asknabloid.com/what-is-the-be…
try http://goldenbullpicks.com
they make it very easy!
Undervalued contrarian with a near term overlooked growth catalyst.
Broad based index funds.
Contrarian with patience…. if you are buying what others discard at a steep discount you will be rewarded eventually when the spotlight comes back around.
A passive, buy-and-hold strategy.
1) Set up Roth IRA with http://www.vanguard.com
2) Pick retirement-date fund close to my retirement date
3) Set up automatic payments with my employer through payroll deduction
4) Go do something else for 30 years. Don’t watch CNBC. Don’t change your strategy. Don’t listen to stock tips from others.
5) At retirement date, log onto your Vanguard account and see that you are now a millionaire.
Any questions? http://www.invest-for-retirement.com
I like the ‘buy what you buy’ and ‘buy what you know’ strategies.
The ‘buy what you buy’ means purchase shares in companies that make or sell the products you buy. I bought shares of Coke, Nike, Walmart and McDonald’s long ago when I first started investing.
Recently I have bought shares in OXY, BP, Lehman and Morgan Stanley based on doing consulting work for them and learning they were rock solid.
it depends on what your risk tolerance and time horizon are like. but i am currently going with aggressive growth with a bit of international thrown in.