As we watch global stock markets once again hit all-time highs, in a pandemic year that has seen some of the biggest single day gains and losses in history, a perennial question is, how can we become more successful investors?

My simple answer continues to be, stick with these 4 golden rules.

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 more than likely, as all the evidence shows, you will get it very wrong.

3. Diversify

So how should we invest? Simple. Diversify across geographies and asset classes. Irish investors have no excuse if they haven’t learnt this one big lesson from the great crash of 2008.

4. Stay Invested

Finally, ignore all the politics (Trump, Brexit, etc) and ignore all the noise (news headlines, market gurus, etc) and stay invested.

 

These rules are at the core of the Money Smart Investment Philosophy.

If you want to know more or need help with your money call me on 01 276 0006.