February 27th, 2012

2 x 10 Investment Lessons

Years ago, I regularly visited a site that offered nothing more than a wonderful,  limitless supply of Wall Street sayings, truths and rules-of-thumb.  When I found the market to be frustrating or demoralizing or I caught myself being giddy with optimism or self-satisfaction I would turn to the site and read some wise quotations from market pioneers or real, true stock market gurus.

I usually try to bring you fresh ideas and concepts but I need to bring this to your attention the following item which happens to be all over the Internet because 1) I think it’s so true and 2) you may have been missed it because today each of us is being continually inundated with information and data useful and otherwise.

Jeremy Grantham, British investor and co-founder and Chief Investment Strategist of one of the largest asset management firm in the world, Grantham Mayo Van Otterloo (GMO), based in Boston.  Grantham is regarded as a highly knowledgeable investor in various stock, bond, and commodity markets, and is particularly noted for his prediction of various bubbles.  He just contributed a list of his 10 lessons investors have to learn in order to survive and succeed as investors to MarketWatch.

Bob Farrell, formerly Merrill Lynch’s chief market strategist, pioneered technical analysis of stock movements and broke new ground using investor sentiment figures to better understand how markets and individual stocks might move.  Many years ago, he had come up with his own lost of 10 lessons for investors.

I’ve combined those two lists into new tablets of 20 commandments.  I suggest you click on the image, print it and post it prominently above wherever you make most of your investment decisions or do your trading.  Whenever you are confused and don’t really know what to do about a stock or about the market, read the list again … it will help clear your head and regain your balance.

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