Jason Zweig’s 10 Investment Rules

Jason Zweig's 10 Investment RulesYou already know very well what I like to learn from the best. Normally, I look to the advice of the best investors in the world. However, in this case I bring you the advice of one of the most respected financial journalists at an international level. In this article we will look at Jason Zweig's 10 investment rules.

¿Quién es Jason Zweig?

Jason Zweig is an acquaintance Benjamin Graham.

Jason Zweig's 10 Investment Rules

This short compilation of Jason Zweig's 10 investment rules is taken from his book “Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich”.

  1. Have a global vision. Use a spreadsheet to keep track of the evolution of your total assets. Pay no attention to short-term fluctuations.
  2. Hope for the best, but prepare for the worst. Prepare to face any kind of disaster by diversifying. Learn about the history of the markets. Keep in mind that good investments can misbehave for some time. Don't let periods of low returns cause you to panic.
  3. Research first, invest later. Study the accounts of the companies and investigate their businesses as much as you can. Do your homework!
  4. Never say always. Never put more than 10% of your assets in a single investment.
  5. Know what you do not know. Don't think you know everything. Ask yourself the reasons why an investment can go wrong.
  6. The past is not the prologue. Investors buy low and sell high! They don't buy something simply because its price is going up.
  7. Ponder what they tell you. Check the success and failure history of anyone who gives you investment recommendations. Before implementing any strategy, look for objective evidence of its results.
  8. If it sounds too pretty to be true, it probably is. High profitability + low risk + short term = Scam.
  9. Costs kill. Find a strategy that takes into account costs so that they do not reduce your profitability.
  10. The eggs break. Never put all your eggs in the same basket. Diversify across countries and asset classes. Don't invest all of your retirement money in stocks in the company you work for.

My take on these investment rules

Jason Zweig's 10 Investment Rules are based on common sense. However, as they say, common sense is the least common of the senses.

Having a long-term focus, diversifying, thoroughly analyzing our investments, being humble, minimizing unnecessary costs… These are really simple recommendations, repeated ad nauseam, but that many people insist on forgetting. Therefore, it never hurts to remember them from time to time.

Doesn't it look like them?