4 Words to Live by

The 4 Best Words of Investing Advice
Some of you may enjoy this insightful piece of advice over at Motley Fool.
In a nutshell, the author states the following with regards to great advice limited to 4 words, but with some caution:

• "Buy what you know"
• "Buy low, sell high"
• "Buy an index fund"

He's absolutely right about the first observation when he grabs a quote from Jeff Fischer:

Buy what you know is one-dimensional advice for three reasons. First, what you know may not be worth investing in. Second, the practice of buying what you know is rarely interpreted to mean buy the business model, the cash flow statement, and the balance sheet that you know backwards and forwards. It too often is seen as "buy your favorite brand." Period. If you happen to know and love Kmart, but you didn't learn about its financials, you [were] in a sorry situation because you were an uninformed investor.

Now that's a very keen obeservation. Read more...

Do any of YOU have any words or advice that you live by when dealing with investing, or seeking out your first million? :-)

Filed under: Money Talk, UpNaira, investing, advise