Yesterday, read an interesting article in Sunday Times entitled "The $1 million question : How To Invest Safely?" (by Goh Eng Yeow). Of course, who doesn't want to get a slice of higher returns vehicle (in the stock market) and yet can play it safely?
In the article, it made reference to Mr Warren Buffett's recent advice to the peer investors : put 10 per cent in short-term government bonds and 90 per cent in a very low-cost S&P 500 index fund. I re-interpreted that to be :
1. Invest for the long term (in years)
2. Diversify (stocks with bonds)
3. Invest regularly e.g. through dollar-cost-averaging investing in ETFs
Of course, the old adage "The Higher The Returns ; The Higher The Risks" still stay true most of the time and no one can guarantee 100% "safety" as far as Stocks Investment is concerned. Throughout your investing journey, which principle(s) are you adopting to ensure your "safety"?
Cheers!
...
