Food For Thought
Henry David Thoreau taught us this: "Life is frittered away by detail, so we should simplify!" And likewise, fortunes are frittered away by complexity. Therefore, in order to be a more successful investor, you must simplify your approach to investing. And the best way to do that is by buying plain old stocks and bonds or the no-load funds that own them.
If you pick up 1,000 shares of General Electric (GE) or $50,000 worth of a Treasury bond, you can be highly confident that you are paying a fair price. But not confident that you will make money. Anything that is capable of providing a worthwhile gain is also capable of going down. But when you buy GE or the T-bond, you are buying on the same terms as Warren Buffett.
Acquire a wide enough assortment of securities over a long enough stretch of time and you should do just fine. You could even make your selections with a dart board and probably retire in better style than someone who buys complicated things. And your life will not be frittered away reading prospectuses!
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If you pick up 1,000 shares of General Electric (GE) or $50,000 worth of a Treasury bond, you can be highly confident that you are paying a fair price. But not confident that you will make money. Anything that is capable of providing a worthwhile gain is also capable of going down. But when you buy GE or the T-bond, you are buying on the same terms as Warren Buffett.
Acquire a wide enough assortment of securities over a long enough stretch of time and you should do just fine. You could even make your selections with a dart board and probably retire in better style than someone who buys complicated things. And your life will not be frittered away reading prospectuses!
* * * * *
posted by Bob Moser at
7:00 PM
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