Financial Rules of the Road
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May 30, 2012 1:44 PM
Most individual investors make their money over time, not overnight. While their strategies may differ based on their personal needs, the successful investors we've known seem to follow the same set of guidelines. At Edward Jones, we call these guidelines "The Rules of the Road."
As is often true in life, the rules are simple, but not always easy to follow. We hope they will be helpful to you as you consider your own investment decisions.
- Rule #1 Develop a Strategy
- Rule #2 Stick with Quality
- Rule #3 Diversity
- Rule #4 Invest for the Long Term
- Rule #5 Address Mistakes Quickly
- Rule #6 Understand Risk, and Take Steps to Help Reduce It
- Rule #7 It's not Just What you Make, It's What You Keep
- Rule #8 Quality Stocks Have Historically Outperformed Quality Bonds
- Rule #9 Focus on What you Can Control
- Rule #10 Review Your Strategy
When you're traveling, false starts and wrong turns can cost you precious time. When you're investing, they'll cost you a great deal more than that.