Boiling down investment advice to 3 things every boomer male needs to know is not easy for the novice. That’s why on this Wealth Wednesday we are leaving it up to investment guru Porter Stansberry. He’s a long time contributor to the successful EarlyToRise.com blog. I’ve been following him for years and he makes incredible sense out of the gobbledygook of the financial world, helping investors along the way. His advice should be taken seriously. That is, if you want to be a successful investor.
3 Things Every Boomer Investor Needs To Know
“…what are the three things you believe every investor in common stocks must know to succeed, but that you believe most people don’t know how to do? Where is the greatest gap between the value of knowledge and the inexperience of most individual investors?”
– Porter Stansberry, EarlyToRise.com
So when asked the above question, here are the three things Porter Stansberry highlighted in his answers.
No. 1: The most important thing for investors to understand about investing in stocks is simply what kind of businesses make for great investments and how to properly value these kinds of businesses. Judging by my experiences with wealthy and business-savvy subscribers, I would estimate less than 10% of our subscribers really understand these concepts. Without this knowledge, I’m nearly certain you can’t be successful as an investor. Not for long, at least. 
No. 2: The second thing I know you must have to “cross the desert” successfully is a strategy that will continue to make you money even when you’re wrong about the big picture. The idea that you don’t ever want to bet the farm on any particular outlook (or any particular investment recommendation) is hard for most investors to understand and implement. When events in the world spook most individual investors, they simply pull out of stocks completely. They generally do so at the worst possible time. You have to learn how to make money even when you’re wrong about the market as a whole. And you have to follow your strategy… even when it’s scary.
No. 3: The last thing I think most individual investors either never learn or only learn the hard way after several big beatings is to never, ever chase what’s “hot.” These investment “mirages” will cost you almost every time. It takes a lot of discipline to stick with great businesses you can personally understand. It takes discipline to buy them when you can get them at a reasonable price. It takes discipline to follow your position-size limits.
You can read the entire post here. Let us know what you think. As an investor does this make sense to you? If so, why? Give us your thoughts below.
Do well.
