Friday, April 19, 2013

Shane Oliver's Keys to successful investing

Key points:

  • Four investment market realities: there is always a cycle, it's a mad, mad, mad world; starting point valuations matter a lot for returns; and the power of compound interest.
  • Keys to successful investing: know yourself; seek advice; invest for the long term; diversify; turn down the noise; avoid short-termism; focus on investments offering sustainable cash flow; recognise there is no free lunch; buy low, sell high; don't fret the small stuff'; don't over rely on expert forecasts; recognise the aim is to make money, not to be right; beware the crowd at extremes; and if you have the right strategy, never despair. 

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Melbourne, Victoria, Australia