3 ms·
Warren Buffet has only a few basic rules. Amongst them is only invest in things you understand. I think as a general rule, its a pretty good one.
by swalsh 13y ago
Warren Buffet has only a few basic rules. Amongst them is only invest in things you understand. I think as a general rule, its a pretty good one.
- ap22213 13y agoUnfortunately, I don't understand much. So, I just invest in S&P500.
- enoch_r 13y agoBy doing so, you'll beat the post-fee, ex ante performance of actively managed mutual funds[0]. You're doing exactly the right thing--investing in broad-based indices rather than trying to beat the market. As your time horizons get shorter, you can move some money to bonds (treasuries, bond ETFs, etc.) to decrease your risk (and reward). [0] http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1356021 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1356021
- pyrrhotech 13y agomuch better than investing with a some wall street fund that charges exorbitant fees to lag the market