November 28, 2007: Investment principles

I published this months ago, but with market conditions and other issues providing a confluence leading to self doubt and angst, I thought it would be appropriate to list these again.

Investment Principles I endorse:

Self discipline, not income level, determines your ability to save money.

If your "safe" investments do not outpace inflation, then they are not truly safe.

Don't try to time the stock market. Those who do usually fail.

Your investments should be a part of an overall strategy designed to achieve your specific financial objectives.

Substantial growth of assets over the long term requires equity investments, which can be volatile. The percentage of equities in your portfolio should be compatible with your tolerance for risk.

The most efficient portfolios are properly diversified both within and among basic asset categories.

The most successful investors are patient, long term investors.

Investing should be as systematic as paying a monthly bill.

You should take a holistic approach to your financial life,recognizing that tax strategies, insurance needs, and investment goals are interrelated.

You should find a knowledgeable tax and financial advisor you can trust --especially the tax advisor if you invest on your own.