My 4 Unbreakable Rules Of Investing

As we watch global stock markets once again hit all-time highs, a perennial question is, how can we become more successful investors? My simple answer continues to be, stick with my 4 golden rules below. 

1. Don’t Hoard Cash

Cash should be for very short term savings and nothing else. Hoarding money in deposit accounts is not an investment strategy. Investing means taking some risk to enjoy better returns – for me that means continuing, all through life, to invest surplus cash as soon as I have it.

2. Never Speculate

Ever. So don’t buy individual shares, never time markets, never speculate on whether a certain country or asset class will do better than others. Why? Because then you are a market trader and taking all the unnecessary extra risks that implies.

3. Diversify

So how should we invest? Simple. Diversify across geographies and asset classes using a multi-asset fund of funds. Irish investors over the age of 10 have no excuse if they haven’t learnt the big lesson from the crash.  

4. Stay Invested

Finally, ignore all the politics (Trump, Brexit, Elections, etc) and ignore all the noise (experts, talking heads, market gurus, etc) and stay invested.

These 4 unbreakable rules of investing are the core of Money Smart’s investment philosophy. If you want to know more or need help with your money call us now on 01 276 0006.