34 Investment Strategies and Rules to Make You a Better Investor

The most important attribute of successful investors is discipline in following a set of investment strategies and rules. In other words you don’t have to have a high IQ, a high education, extensive experience, or even great instinct.
You can be a successful investor by being disciplined in following a set of investment strategies and rules that guide you through bull and bear markets, times of greed and times of fear, and periods of high risk and periods of great opportunity.

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Modern Portfolio Theory

Modern Portfolio Theory was developed in the 1950’s with the belief that portfolio returns could be maximized for a given amount of investment risk by combining assets in a particular manner.
The theory is that, using relationships between risk and return such as alpha and beta, and defining risk as the standard deviation of return, an “efficient frontier” for investing can be identified and exploited for maximum gain at a given amount of risk.

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ETF Portfolios Guide – Advantages, Disadvantages, Newsletter

Arbor Investment Planner recognizes the need for an ETF Portfolios Guide. The goal is to assist the apprentice investors in their portfolio management decisions. The explosion in the number of ETFs means there is a large variety of ETFs to choose from today.

ETFs are the perfect investment vehicle for the apprentice investor, investors with small portfolios, or investors with large portfolios who want significant diversification in a targeted geographical area, sector, or industry. Used wisely they can be a valuable tool to lower risk and/or improve portfolio returns.

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Buy and Hold Works….Until It Doesn’t

Buy and Hold is considered by many to be the holy grail of investing. Its current popularity has become a cult-like strategy that draws criticism to its critics and disdain towards those who dare speak out against the beloved investing strategy.

So buy and hold works….until it doesn’t. People will quote all kinds of statistics “proving” that buy and hold works. Its the trend of our day. This is nothing new. Bull markets make buy and hold look good. Bear markets make buy and hold look bad.

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Portfolio Diversification Definition and Purpose

Portfolio Diversification is a foundational concept in investing. It can be a rather basic and easy to understand concept. However, in its implementation, many investors make catastrophic mistakes with too much concentration and others settle for average performance because of over diversification.
Portfolio diversification is a balance between concentration and over diversification to optimize risk and potential return.

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The Most Important Thing by Howard Marks: Book Review and Summary

Howard Marks delivers his commentary in a style that has been described as “insightful, direct, homespun, expert and sharply pointed”. His objective in writing The Most Important Thing was to provide a book that would lay out his investment philosophy in a manner that would be beneficial to the average investor.

His approach is to lay out The Most Important Thing Is….. in 20 Chapters. Each is a building block to successful investing. Together they create a “solid wall” in which each piece is essential “guideposts” that keep investors focused on the most important things for successful portfolio management.

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Asset Allocation Plan – 7 Factors to Consider

A well constructed asset allocation plan can lower portfolio volatility and increase returns at the same time! That makes asset allocation more important than which individual investments you choose for diversification.

Many financial firms give you standard platitudes about asset allocation plans. I’m going to challenge you to think skeptically about some of their commonplace thinking. Most of them leave out important aspects, such as expenses and valuation, because it doesn’t fit the products they sell. Here are the factors that are important and my thoughts on each.

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5 Value Strategies For Asset Allocation

The average investor makes decisions that cause them to underperform average investment returns. The difference between average investment returns and average investor returns is often called the behavior gap.
The following value strategies will provide a framework for making your asset allocation investment decisions and avoiding many of the mistakes that create the behavior gap.

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