Here are a dozen guidelines from Doug Kass.
These were developed, according to Doug, regardless of market conditions, as sound investing practices:
1. Err on the side of conservatism.
2. Learn from the best, in classic investing books or through conversations with trustworthy individuals.
3. Avoid advice from those who lack flexibility and are dogmatic.
4. Be more concerned with return of capital than return on capital.
5. Trade/invest with below-average positions in order to take advantage of the market’s volatility and opportunity.
6. Take a base on balls, hit a single, but don’t go for the fences.
7. Buy straw hats in the winter (meaning, but out of favor items).
8. Buy only the best of breed in periods of economic/market uncertainty.
9. Always leg into a position.
10. Be patient.
11. Buy when your hands are shaking; sell when you become overconfident and complacent.
12. Always remember investing is about common sense.
Good stuff. Thanks, Doug.
12 Investment Principles for the Abyss
RealMoney Silver, 1/17/2008 11:40 AM EST
Get used to hearing that phrase: Counter-Party Risk. You will be hearing a lot of it in the coming year. Its one of the reasons I disagree with my friend Doug Kass about any bottom in Financials. Consider this small concern: Given the enormous amount of hedging that was done by Investment Banks (Merrill, Morgan…Read More