Basic Truths of Profitable Investing

Vernon Coleman

Very personal finance tips taken from Vernon Colemanís book Moneypower

1) If shares go up, sell half the shares every time they double. This way you wonít lose everything if they go down again. A profit is guaranteed.

2) Ignore the recommendations of analysts Ė they are wrong more than they are right. Astrologers produce more reliable forecasts than analysts.

3) Never use forward p/e ratios Ė they are worse than useless because they rely upon analysts projections.

4) Never take investment advice from anyone poorer than you (too many financial advisers offering advice for big fees were firing ink pellets across the classroom a month or two ago).

5) Never invest in a Unit Trust. The costs are too high. Investment Trusts (which have prices quoted daily are a much better buy.)

6) Insurance companies, bankers, utility companies, brokers, investment advisers and regulators are all routinely dishonest. Never trust them.

7) You are the only person who is genuinely interested in your financial security.

8) Asset allocation decides 94% of performance when picking investments. Stock picking and market timing make up less than the remaining 6%.

9) Trading costs will ruin your finances. Day traders and those who Ďbetí on the markets almost never make money.

10) Discretionary accounts are a route to disaster.

11) Going short is an investment device designed for investors who want to get rid of their money.

12) Diversification is the key to investment survival.

Vernon Colemanís book Moneypower is available as an ebook on Amazon.

Copyright Vernon Coleman 2017

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