List of Investment Mantras

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List of Investment Mantras

Let's collect a list of investment mantras here!
If possible, let's also add the circumstances / market conditions that make them valid (or not).
1. "When confident, concentrate; when doubtful diversify". When is this considered a sensible advice?
2. "Don't put all your eggs in one basket". In what kind of circumstances is this a smart strategy?
3. "Buy at bottom + 1 and sell at top -1". Is this a good strategy? If not why? If yes when?

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		1 Vakhtang Kelbakiani Student (University), Georgia
	Investment Mantras: 4. Keep your Eyes Open - a Mantra Worth Keeping in Mind 4. "Keep your Eyes Open. Base your theory on facts. Don't filter facts to suit your your theory". I found this one in an investment book. Says that you should keep digging and even one deviation from your theory can be a valid reason to make a new assumption and a new theory. The investor faces a time versus safety dilemma.

		2 Hijab Naqvi Student (MBA), Pakistan
	On #2: Don't Put All your Eggs in One Basket Don't put all your eggs in one basket is a particular smart strategy when the company's financials are fluctuating and you are not sure about the company's profitability trend in the future, or in the past the company's financial performance was not very strong.

		2 venkataramanan Professor, India
	On #2: Don't Put All your Eggs in One Basket The above sentence puts in a nutshell the concept of diversification in order to reduce one's risk.

		1 michael cook, United States
	5. Don't Fight the Fed This is a mantra, a "slogan" if you will, not a strategy. I can't think of a situation in which an investor would want to "fight" the Fed.

		0 venkataramanan Financial Consultant, United States
	Taxation Mantra (Personal & Business): Pay and Forget As far as taxes are concerned "Pay & forget" is a better maxim than "Save & suffer", due to stress. The advantage is that the time spent to think of and pick up loop holes most of the time leads to litigation and consequent stress.This time can better be used to find out ways to reduce cost which will ultimately improve profitability.