March 16, 2016
"Richard’s Thoughts on Invest Philosophy"
By the Dow Theory Team
One reason why many investors can't make money (translation: they lose money) is that they have no clear idea of what they are trying to do. They have not developed an investment philosophy.
Take, for instance, the case of Charlie. A broker tells Charlie to buy Logovision and he buys it. A neighbor tips Charlie to buy into the company where he works, X-jet. Charlie buys it. Next a close friend tells Charlie that he personally has been buying Muni bonds like crazy. Charlie buys Munis. A year later Charlie has lost half his capital. He puts what's left into a real estate partnership. You know the rest.
Unlike Charlie, I have an investment philosophy, and consciously or unconsciously it always affects my writing. My philosophy goes like this: