Remember these rules ….
Warren Buffett famously said:
Rule 1: Never Lose Money
Rule 2: Never Forget Rule 1
This week, I was reminded of that by an investor who had just incurred a 100% loss.
This was in a ‘FX bot’ trading scheme which advertised returns of 5%+ per month.
As i always remind my investor circle (none of them got involved in this):
If it sounds too good to be true, it usually is.
Sadly, people often forget that when chasing high (and unrealistic) returns.
Worse, some invested their pension capital into this scheme.
We must remember: our pension exists to look after future retirement needs. And as a tax-efficient vehicle to pass down.
It’s a bad idea to take large uninformed risks, particularly inside a pension.
Volatility v Loss:
an important difference to know when investing.
Stocks may see volatility. But diversified stocks have never made a permanent loss.
Knowing that is the easy way to pass Warren Buffett’s famous rule. And don’t forget, without volatility, there wouldn’t be any returns.
Always Remember:
- Time in the Markets always beats timing the markets
- Stay Diversified
- Minimise those leakages: Fees, Inflation, and Taxes
- Financial Markets are a great source of recurring income
- ETFs, Balanced Funds and Options achieve all the above
- Being educated helps you outperform 99% of the population
… to ensure your investments work for YOUR financial freedom (not someone else’s)
And …
For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.
Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth. And Options to create recurring income.
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Finally …
– Don’t take the above as advice as it may not apply to you personally
– Your Capital is at Risk
– You may not be covered by the FSCS
– Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now
