Maxims for Investing

  1. Always invest with a plan.
  2. Discipline trumps conviction.
  3. New Investment Opportunities come along every day, but capital losses are permanent.
  4. Track, analyze, report, and reassess everything. There are lessons to be learned from each trade.
  5. Don’t let bad trades turn into investments.
  6. There are times to invest passively and times to manage actively; best to understand the difference.
  7. Flexibility is the greatest asset for a fund manager. Embrace it!
  8. “Heads I win; tails I lose a little”, “Sell your Losers and let your Winners run”, and “The Trend is your Friend” are enduring Wall Street sayings for a reason.
  9. Market Sentiment is just as important as Economics and Fundamentals – even more so at tops and bottoms.
  10. Volatility creates fear for many investors and separates the professionals from the amateurs.
  11. All Rules are meant to be broken. Markets are never wrong – opinions can be.

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