The Long-Term Investor’s Order of Operations
What if we had a prioritized list of ideas that long-term investors ought to consider? Something that cuts straight to the facts.
Jesse Cramer created The Best Interest to explain personal finance and investing in simple terms. His writing has been featured by CNBC, MSN, The Motley Fool, and other national publications. He resides in Rochester, NY with his wife and their dog, where he works in wealth management. Follow Jesse on Twitter: @BestInterest_JC
What if we had a prioritized list of ideas that long-term investors ought to consider? Something that cuts straight to the facts.
You’ve identified what might lead to failure. Sometimes, the risk is too big and far outweighs any rewards. Always get back to your car.
As people (and investors) we need to find a balance between two competing thoughts: the realism of today’s circumstances, and the hope of long-term success.
Why do we keep discussing the 60/40 portfolio? Where did it come from? Why does it have so much staying power?
If a stock drops (-50%), it needs to grow +100% to breakeven. But…does this mean anything important to investors?
Are retiree’s who own bond funds setting themselves up for harm that a bond ladder could never inflict? Or is this six vs. half-dozen?