Smarter Investing 3rd edn, 3rd Edition

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It only takes a minute

When I originally talked to friends and colleagues about my plan to write a book, the unanimous response was: ‘Great, but please make it a pamphlet’. They are to a large extent right. The 80/20 rule applies in investing – you gain 80% of what you need to know from only 20% of the effort. To that end, the summary below provides a brief list of some of the guidelines commonly used in the investment industry when giving advice.

These tips can help you to become a better investor by way of a kind of investing by numbers, without a real understanding of why or the consequences of the actions you take. They may help you to avoid some of the pitfalls that lie in wait. Some use gross oversimplifications and assumptions about ...