Sunday, February 10, 2008

INVESTMENT NUGGETS

The young investor should consider the following investment principles:
1) Invest early.
2) Invest at regular intervals.
3) Invest for long term.

John Templeton, one of the greatest global stock pickers of the century, has distilled his investment principles as follows:
1) Invest for real returns,
2) Keep an open mind,
3) Learn from your mistakes,
4) Consider avoiding the popular,
5) Buy during times of market pessimism
6) Hunt for value and bargains
7) Search worldwide

Given below are some more golden rules from him:
a) The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell;
b) I never made money for clients by buying anything expensive;
c) The only investor who should not diversify is the one who is right 100% of the time;
d) For those properly prepared in advance, a bear market in stocks is not a calamity but an opportunity;
e) If you buy the same securities as other people you will have the same results as other people;
f) To buy when others are despondently selling and to sell when others are greedily buying requires the greatest fortitude and pays the greatest reward;
g) Bear markets has always been temporary. And so have bull markets.
h) History shows that time, not timing, is the key to investment success. Therefore, thebest time to buy stocks is when you have money.

Mr.Rajive Choudhury,CEO Apeejay Oxford Bookstore, has the following advice for investment:
1) Do not be in a hurry to make money,
2) Do your homework - get into the details of the company whose stock you are buying;
3) Stick to long term investing.

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