1. Market declines should be seen as opportunities, not catastrophes.
2. Compound interest is where the magic is — but it takes a really long time to kick in…like decades long.
3. Everyone needs to have a solid financial plan, but the most important part of the plan is planning on the plan not going according to plan. (Savvy, eh?) Remember to stay flexible.
4. Truly successful investing is more about psychology, behavior and temperament than IQ or education. The ability to keep your cool and not go on a selling rampage during market downturns will serve you well.
5. The best solution (and the most boring) to most financial problems is to save more money.
6. The perfect investment has never, and will never, exist. Make sure you diversify your portfolio.
7. You can probably afford to not be a great investor, but you can’t afford to be a bad one.
8. “I don’t know” is (almost) always the correct answer when someone asks you what’s going to happen in the markets today, tomorrow… whenever.
9. There are no brownie points awarded for difficulty or complexity. Keep it simple.
10. If you need to spend or use your money in a relatively short period of time, it doesn’t belong in investments or the stock market.
11. For the buy and hold method to truly work, you have to do both when markets are rising AND falling.