Comments on: How to develop a long term approach to investing? http://www.onemint.com/2009/11/13/how-to-develop-a-long-term-approach-to-investing/ Helps You Make Better Financial Decisions Sat, 11 Feb 2012 17:32:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Carnival of Money Stories: Great Questions edition | Mighty Bargain Hunter http://www.onemint.com/2009/11/13/how-to-develop-a-long-term-approach-to-investing/comment-page-1/#comment-45464 Carnival of Money Stories: Great Questions edition | Mighty Bargain Hunter Mon, 23 Nov 2009 08:04:53 +0000 http://www.onemint.com/?p=3043#comment-45464 [...] discusses how to develop a long-term approach to [...] [...] discusses how to develop a long-term approach to [...]

]]> By: Mark Wolfinger http://www.onemint.com/2009/11/13/how-to-develop-a-long-term-approach-to-investing/comment-page-1/#comment-44217 Mark Wolfinger Fri, 13 Nov 2009 18:43:53 +0000 http://www.onemint.com/?p=3043#comment-44217 1) If you invest in solid companies, it does cut risk. But it diminishes potential reward. 2) If you decide to invest 'for years' and if you refuse to take a loss becasue it makes you feel bad, that's the behavior of an ostrich. If the reason you invested in a compnay changes, then you have no reason to continue to hold the shares. 3) The modern, prudent investor recognizes that the traditional ideas have not worked, but has nowhere to turn for better ideas. 4) Learning to use options to reduce risk and guarantee no large losses (in return for accept that there will be no large gains) is an alternative that should be considered. But virtually 100% of financial advisors ignore options. That's no reason for investors to ignore them. Mark 1) If you invest in solid companies, it does cut risk. But it diminishes potential reward.

2) If you decide to invest ‘for years’ and if you refuse to take a loss becasue it makes you feel bad, that’s the behavior of an ostrich. If the reason you invested in a compnay changes, then you have no reason to continue to hold the shares.

3) The modern, prudent investor recognizes that the traditional ideas have not worked, but has nowhere to turn for better ideas.

4) Learning to use options to reduce risk and guarantee no large losses (in return for accept that there will be no large gains) is an alternative that should be considered. But virtually 100% of financial advisors ignore options. That’s no reason for investors to ignore them.

Mark

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