Away From the Noise: The World’s Best Investment Advice
With the rising complexity of financial markets, it’s easy to forget some of the few, simple principles that build wealth. Reviewing those principles, and making sure that one’s investments fit into those principles, can be crucial for building wealth.
That includes not just earning a positive return over inflation. It also means employing strategies to avoid losing money, while not shying away from risk. Striking the right balance can lead to excellent results.
The first principle is to work towards investing in assets that can compound your wealth. That doesn’t mean swinging for the fence trying to earn a big return every day, week, month, or year in the market.
A penny that doubles every day will be worth more at the end of a month than a $1,000 daily payment. But to get there requires time, patience, and a willingness to see an investment strategy through.
The next strategy is to take advantage of dollar cost averaging. Over time, investing in the market whether it’s up or down can lead to better returns than trying to time the market.
Most fail with market timing, as they try to get into a hot stock after it’s made a large move. But the dollar-cost average strategy can help lower the cost basis of an investment, particularly in a down market.