9 Key Things for Successful Investing
Source: Shane Oliver (AMP)
Successful investing is not always easy and can be stressful
even in good times.
There is an ever-present worry list surrounding investment markets – usually involving some combination of concerns about economic activity, inflation, profits, interest rates, politics, natural calamities, wars, etc. It makes it hard for investors to stay focussed and avoid silly mistakes.
Uncertainty is magnified by perennial predictions of a crash and then periodically by talk of the next best thing that’s going to make us rich.
It would be nice if the investment world was neat and predictable, but it’s well known for sucking investors in during good times and spitting them out during bad times. If anything, it’s getting harder reflecting a surge in the flow of information and opinion. This has been magnified by social media where everyone is vying for attention and the best way to get this is via headlines of impending crises. This all adds to investor uncertainty and erratic investment decisions.
With this in mind, I have written regularly about nine key things for investors to bear in mind to be successful. This note provides a reminder.
Make the most of the power of compound interest
Don’t get thrown off by the cycle
Invest for the long-term
Diversify
Turn down the noise
Buy low, sell high
Beware the crowd at extremes
Focus on investments with sustainable cash flow
Seek advice
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