This is an oldie, but a goodie from James Montier. If you haven’t read it then get your life together!
“In my previous missive I concluded that investors should stay true to the principles that have always guided (and should always guide) sensible investment, but I left readers hanging as to what I believe those principles might actually be. So, now, for the moment of truth, I present a set of principles that together form what I call The Seven Immutable Laws of Investing.
They are as follows:
1. Always insist on a margin of safety
2. This time is never different
3. Be patient and wait for the fat pitch
4. Be contrarian
5. Risk is the permanent loss of capital, never a number
6. Be leery of leverage
7. Never invest in something you don’t understand”
The Seven Immutable Laws of Investing
By James Montier
Latest posts by Cullen Roche (see all)
- Are ETFs and Index Funds More Dangerous in a Bear Market? - 07/17/2017
- Three Things I Think I Think – The Bubble Cometh? - 07/14/2017
- 3 Things I’ve Learned Since the Financial Crisis - 07/09/2017
Did you have a comment or question about this post, finance, economics or your love life? Feel free to use the discussion forum here to continue the discussion.*
*We take no responsibility for bad relationship advice.