1. We all know the 3 biggest variables when investing in real
location, location. But what about your stock and bond inves
the three most critical indicators when choosing a good inve
Results, Results, Results.
2. Not too long ago, Fidelity Registered Investment adviser Gro
investigation with HNW Inc. on wealth and investment advice
high-net-worth (above $1 million) and ultrahigh-net-worth (
investors, about experts along with their advice. Then HN
advisers themselves to finish the research. The outcome
illuminated a differences between advisers and investo
value, advice, and performance.
3. When enquired which was most important, portfolio perform
relationship, nearly all advisers, Eighty percent, said the cal
was the key aspect. When the high-net-worth investors wer
question, Seventy nine percent deemed the portfolio perform
element. According to high-net-worth investors, results re
4. It's important to possess a quality connection with an advise
the bare minimum? After all if you are not happy with an ad
you permit them to manage your money? Big Wall Street
mistaken. Most investment firms stress the importance of "
customers on the distinct investment options. Just as befo
important, but what are you really paying fo
5. What would you rather have an in-depth understanding of
theory or a positive return in a down stock market? (If you
you'll be able to dazzle all your friends at your next party!)
from the survey suggest that advisers are too centered on th
client relationship while the investors are looking for the be
that investment results really do matter. After all, isn't that w
for?
6. Killing poor performance.In order to receive good performa
wipe out poor performance. And the root-cause of poor perf
No kidding you say; and the root-cause of dying is
7. But I'm serious. If you eliminate the losses you may take
portfolio's performance. How do we control losses? You con
an exit strategy. You heard right...an exit strategy. Highlight
tape it to your mirror. Lacking an exit strategy how would yo
should cut the losers in your investment portfolio or lock-in
Nothing goes up forever. Therefore, it is vital to know when
off the table.
8. Warren Buffett once said that there are only two rules to in
Don't lose money. Rule #2: Never forget Rule
9. POP QUIZ: If your portfolio loses 25% of its value this year, w
you need next year to break even?
20. Did you get the correct answer? If you lose 25% of your port
33.3% return, to break even. In the event you lose 50% of you
a 100% return, just to break even! This is why it is vital not
away. The reason why so many individuals lost money in the
is that they, or their adviser, did not have an exit strategy. Re
no reason to be emotionally attached to any stock. Investm
for one thing and one thing only: to make you m
21. Run it like a business. It all boils down to this: you have to r
just like a business. And just like a real business, you need to
strategy for success. You have a choice to make, manage you
or hire a competent manager. If you don't have the tools, or
handle the day-to-day operations of your portfolio, then yo
with a skilled money manager.
22. The choice is yours. You can choose to ignore performance an
market gives you or you can take control of your investment
run your portfolio like a business the sooner you will stop p
After all the only thing worth paying for are res
