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.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.