My Sunday Washington Post Business Section column from yesterday — Keep it simple, avoid the pitfalls — described 10 ways to keep your investing simple.

Here are my 10 (plus 2 corollaries)

Simplify Your Investing
1 Go passive.
2 Diversify across asset classes.
3 Be mindful of valuation.
4 Dollar cost averaging.
5 Keep costs and expenses low.
6 Rebalance your portfolio.
7 Avoid the noise.
8 Review your portfolio regularly.
9 Steer clear of venture capital and private equity
9b Most IPOs are a sucker play.
10 Avoid new financial products at all costs.
10b Don’t buy “house product,” either.

You can see the explanation for each of these here.

 

Avoid becoming these dudes:

 

Source:
Keep it simple, avoid the pitfalls
Barry Ritholtz
Washington Post, January 25 2013
http://www.washingtonpost.com/business/keep-it-simple-avoid-the-pitfalls/2013/01/24/210063fc-65a3-11e2-9e1b-07db1d2ccd5b_story.html

Category: Apprenticed Investor, Rules

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

7 Responses to “10 Ways to Simplify Your Investing”

  1. Omnivore says:

    OT: what happened to mobile site? Now can only read first 100 words or so of each post. Have to go to desktop version to read more. I’m a regular reader but the changes make your site all but inaccessible to mobile users.

    ___

    BR: I was fooling around with some settings and messed something up.

    Its fixed now

  2. catman says:

    No’s 9 and 10 are particularly mainstream and egregious.

  3. Expat says:

    “That dude” happens to be Jerry Brightman, one of the most successful independent floor traders in NYSE history. He is a legend at the exchange and reported to be worth several hundred million dollars, all earned trading the pit. He is renowned for his good humor and unflappable optimism. The picture is no doubt a shot of Jerry laughing or shouting words of encouragement to some other squirming trader.

    ____

    BR: Thats amazing. I will find a better picture!

  4. steve says:

    Barry – something’s wrong with the mobile feeds on your site. In RSS I get a … and when I move to mobile view it also doesn’t show the full text. Hopefully this is just a bug and not changing the RSS feeds (as that would put a damper on reading my #1 blog).

  5. dctodd27 says:

    Barry – Don’t #’s 1 and 3 oftentimes contradict each other? For example, Shiller PE is over 22 – do you really want to be buying and holding SPY right now?

  6. bear_in_mind says:

    Barry,

    1) Overall great tips – thanks!

    2) What are your thoughts on the validity/reliability of Bespoke’s chart (see link) using inflation-adjusted measures of Dow trends?
    http://www.bespokeinvest.com/thinkbig/2013/1/25/djia-highs-actual-and-inflation-adjusted.html

    3) Why are so many technical measures based on 10-day, 50-day, 100-day and 200-day measures? Is it a remnant of the Imperial measure system? They seem rather random, don’t they?

    4) I also observed difficulties with the site with mobile devices. Could it be some bugs appeared after a WordPress update?