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Discipline: Your Secret Weapon – Recap

August 22, 2012

Below is an excellent article about Buy-and-Hold Investing.  

They key points are:

  • Rocky markets = emotional investing = temptation to sell in falling markets and buy into rising ones
  • What often stops investors from getting returns is the lack of diversification, compulsive trading, buying high, selling low, going on hunches and responding to media and market noise
  • Interestingly, women are less likely to try and time the market and are more likely to attribute success in investment to factors outside themselves
  • So, how do we get our emotions and egos out of the process?  One answer is to get distance from the daily noise by appointing a financial adviser.   The adviser will help against buying and selling and keep long-term goals in sight.  An adviser helps with the things that can be controlled:  ensuring our investments are properly diversified – both within and across asset classes – ensuring our portfolios are regularly rebalanced to meet our long-term requirements, keeping costs to a minimum and being mindful of taxes
  • Most of all, an adviser helps by encouraging the exercise of discipline – the secret weapon in building long-term wealth.

To read the complete article, please follow this link:

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