This edition of Oliver’s Insights takes a break from the usual soap opera of issues surrounding investment markets (US growth, Cyprus, Japanese reflation, Chinese growth disappointments, the collapse in gold, etc) and takes a look at critical investment market realities and the keys to successful investing.
The key points are as follows:
- Four investment market realities: there is always a cycle; it’s a mad, mad, mad world; starting point valuations matter a lot for returns; and the power of compound interest.
- Keys to successful investing: know yourself; seek advice; invest for the long term; diversify; turn down the noise; avoid short termism; focus on investments offering sustainable cash flow; recognise there is no free lunch; buy low, sell high; don’t fret the small stuff; don’t over rely on experts; recognise the aim is to make money, not to be right; beware the crowd at extremes; and if you have the right strategy, never despair.
To read this edition of Oliver’s Insights, click here.