Seven Investment Laws

Interesting and very short post over at the Big Picture yesterday.  They quoted investment manager James Montier Seven Immutable Laws of Investing:  I'm going to list them below.  I don't have time to go into these in much detail right now.  I have though added my short thoughts where appropriate after  each item. Hopefully I can circle back to this at some point in the future.

1. Always insist on a margin of safety  {Cash may pay nothing but it doesn't go down with the stock market.  Pros always have some cash}

2. This time is never different

3. Be patient and wait for the fat pitch  {Wait for your indicators to get to oversold levels-marry that with fundamentals and valuation analysis to find better values.}

4. Be contrarian

5. Risk is the permanent loss of capital, never a number

6. Be leery of leverage  {Leverage is usually the killer of not only investment portfolios but also often of businesses.  Remember whether it's a business loan, mortgage or margin interest, the house-meaning the bankers-always gets paid!}

7. Never invest in something you don’t understand.

Link:  Seven Laws