Downloaded the online article The Secrets of Wirehouses by Scott Dauenhauer. I made an eReader ebook on this article. It should be a good reading for my tomorrow’s commute.
I am reading Lee Eisenberg’s The Number recently . It is a easy read, and many sound advices and insights. Some financial ten commendaments from the book:
- Thou shalt not put all thy eggs in one basket.
- Thou shalt have the patience of a nesting hen.
- Thou shalt know that past performance is no guanrantee of future results, nor shalt thou become so exuberant so as to forget that eggs drop, cookies crumble, bubbles burst, and that which goes up will eventually come down.
- Thou shalt not invest in anything thou dost fail to understand.
- Thou shalt not question the divine power of compounding interest.
- Thou shalt not squander long-term returns by incurring frequent trading commissions or excessive mangement fees.
- Thou shalt honor thy company’s retirement plan.
- In particular, thou shalt honor thy company’s match–after all, it’s free money.
- Thou shalt take on risk commensurate with thy ability to sleep well at night.
- Thou shalt honor thy age and timeline by properly apportioning thy ratio of stocks to bonds.
They are good and sound common sense, and I should heed them.
