The Seven Steadfast Laws of Investing

3
1243

In this missive I present a set of principles that have always guided sensible investment that, together, form what I call The Seven Immutable Laws of Investing. [Incidentally, immutable means “not subject or susceptible to change or variation in form or quality or nature.”]  I hope they help you to avoid some of the worst mistakes, which, when made, tend to lead investors down the path of the permanent impairment of capital. Right now, I believe the laws argue for caution. [Let me explain.]

So says  James Montier in an article* published in www.frontlinethoughts.com which Lorimer Wilson, editor of www.munKNEE.com, has further edited ([  ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.) Montier goes on to list the laws and comment on each 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

Let’s briefly examine each of them, and highlight any areas where investors’ current behavior violates one (or more) of the laws.

To read more of this article please go here.

ATTENTION READERS

We See The World From All Sides and Want YOU To Be Fully Informed
In fact, intentional disinformation is a disgraceful scourge in media today. So to assuage any possible errant incorrect information posted herein, we strongly encourage you to seek corroboration from other non-VT sources before forming an educated opinion.

About VT - Policies & Disclosures - Comment Policy
Due to the nature of uncensored content posted by VT's fully independent international writers, VT cannot guarantee absolute validity. All content is owned by the author exclusively. Expressed opinions are NOT necessarily the views of VT, other authors, affiliates, advertisers, sponsors, partners, or technicians. Some content may be satirical in nature. All images are the full responsibility of the article author and NOT VT.
Previous article11 U.S. States to Adopt Canadian Dollar as Their Official Currency!
Next articleGilad Atzmon: The Israeli So-Called ‘Left’