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8 Investing Lessons from Jeremy Grantham

Good letter here as always by Jeremy Grantham.  This part sticks out with some good advice on investing:

1) Inside advice, legal in those days, from friends in the company is a  particularly dangerous basis for decisions; you know little how limited their knowledge really is and you are overexposed to sustained enthusiasm;
2) Always diversify, particularly for your pension fund;
3) Fraud, near-fraud, or colossal incompetence can always strike;
4) Don’t buy stocks yourself if you’re an amateur: invest with a relatively rare
expert or in a low-cost index;
5) Investing when young will start your brain turning on things financial;
6) Painful errors teach you more than success does;
7) Luck helps; and finally,
8) Have a convenient mother to be the fall guy.

Source: GMO

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