Alexander Green, Chief Investment Strategist, The Oxford Club
At financial conferences, I often explain that investment success isn’t about following the right predictions. It’s about following the right principles.
There are six – and only six – factors that will determine the future value of your portfolio. They are:
- The amount of money you have to invest.
- The length of time you let it compound.
- Your asset allocation.
- Your security selection
– diversification
- The expenses you absorb and…
- The taxes you pay.
Economic forecasting, political punditry and market timing should play no role… unless you want to undermine your results.
- In short, if you want to have a bigger portfolio in a few years, save-investas much as you can.
- Let it compound as long as you can.
- Asset allocate properly.
- Diversify broadly.
- Select your securities wisely.
- Minimize your expenses (brokerage fees and commissions)
Tax-manage your accounts to keep the IRS at bay.
Can successful investing really be that simple and straightforward?
Yes. But only if you steer clear of pundits, soothsayers, gurus… and economists.
Good investing,
Alex