1. The dominating reality is that the most important investment decision is your chosen long-term mix of assets: how much in stocks, real estate, bonds, or cash. 2. That mix should be determined partly by the real purpose—growth, income, safety, and so on—primarily by the investor’s ability to stay the course and, most importantly, according to when the money will be used. 3. Diversify within each asset class and between asset classes. Bad things do happen—usually as surprises. 4. Be patient and persistent. Good things come in spurts—usually when least expected—and fidgety investors fare
...more
