The father of value investing, Benjamin Graham gave a great speech in 1963 that left a deep impression -
The investor must recognize that there are uncertain and hence speculative elements in any policy he follows — even an all-Government-bond program. He must deal with these uncertainties by a policy of continuous compromise between bonds and common stocks, and by adequate diversification. He must make a strong effort to have more money invested in common stocks at lower market levels at least on the basis of the cost than at what he recognizes to be potentially high levels.
How to maximize returns -
When markets are cheap, you should maximize your stock exposure and when they turn expensive, you should maximize your bond exposure.
#1. INVEST IN BALANCED FUNDS
#2. INVEST IN UNDERVALUED STOCKS
#3. INVEST IN SAFE OPTIONS
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