Kiplinger

What's Your Investing Philosophy? Is It the Best One for You?

Nothing is more important to long-term investment success than a clear investment philosophy. And nothing is more controversial.

There are, no doubt, numerous investment philosophies and countless investment strategies. Investors and investment professionals attempt to protect themselves with philosophies aimed at extracting gains while normalizing the risks inherent in the market.

Yet, we all know financial markets have a propensity to behave erratically.

It reminds me of my college days in Hawaii catching waves as they relentlessly pounded the North Shore of Oahu. After calm, even serene, summer months the surf kicks up in the fall. Big-wave surfers flock to the beaches forming camps, each attempting to devise methods to ride the biggest waves without paying the ultimate price. Unfortunately, every so often a rogue wave rolls in and takes out not just the surfers, but also a fair number of spectators as well.

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger3 min read
How Much Can You Contribute to a Roth 401(k) for 2020?
The maximum contribution limit for a Roth 401(k) has been raised for 2020. The "catch-up" contribution limit went up, too. That's especially good news for workers who have access to Roth 401(k) accounts through their employer and expect to be in a hi
Kiplinger5 min read
Leverage These 5 Retirement Tax Diversification Strategies
When you're depending on your savings to do the heavy lifting in retirement, you need to wring out as much income as you can from every dollar of savings. However, if most of your savings are in tax-deferred accounts, you'll end up sharing your windf
Kiplinger4 min read
A Tale of Two Investors: 1 Panicked and 1 Didn't
"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness ..." The famous opening line of Charles Dickens' classic Tale of Two Cities has remained culturally relevant for the past 160 years in many