Diversify in stocks and bonds, as in much else

Franklin Templeton Investments  published book “16 RULES FOR INVESTMENT SUCCESS” that describe how Sir John Templeton invested his and his clients money.

Rule 7: Diversify in stocks and bonds, as in much else, there is safety in numbers

Diversify in stocks and bonds

No matter how careful you are, you can neither predict nor control the future. A hurricane or earthquake, a strike at a supplier, an unexpected technological advance by a competitor, or a government-ordered product recall—any one of these can cost a company millions of dollars. Then, too, what looked like such a well-managed company may turn out to have serious internal problems that weren’t apparent when you bought the stock.

So you diversify—by industry, by risk, and by country. For example,  if you search worldwide, you will find more bargains—and possibly better bargains—than in any single nation.

Earlier on Tradingwisdoms

16 Rules For Investment Success – Sir John Templeton

Rule 1: Invest for maximum total real return – Sir John Templeton

Rule 2: Invest do not trade or speculate

Rule 3: Remain flexible and open minded about type of investment 

Rule 4: Buy Low

Rule 5: When buying stocks, search for bargains among quality stocks

Rule 6: Buy value, not market trends or the economic outlook

Igor Marinkovic

Electronic engineer, futures trader and property investor and total beginner in making good web sites