Fwd: The golden rules of investment

• Never invest in something you don't understand.
• Risk can be reduced by spreading investments across different asset classes - property, shares, and cash.
• Stop trying to predict the direction of the share, property or interest rate market; concentrate on buying an investment that makes long-term common sense.
• Buy things with a strong history of profitability.
• Be fearful when others are greedy and greedy only when others are fearful.
• Do not take annual results too seriously; focus on five year average growth.
• Focus on return on equity employed; not on earnings per share or gross rental.
• Remember that high returns normally equate to higher risk.
• Always invest for the long term. Think 'Does this investment have a favourable long term prospect?'
• Stick with your plan if it still makes sense when market conditions change. Recognise that short term volatility happens and that change costs money.