Risk and Reward… but don’t forget about the RISK!
Every investor whether they know it or not, is taking some type of risk in order to generate a potential return. However, too often, people spend all of their time focusing on the potential reward, while ignoring or downplaying the risk. Unfortunately, all of us need to understand that investment results (returns) by definition are random. There is no way to predict with any certainty before it happens what the stock market will return over any given period of time. It is this uncertainty that every investor must live with and learn to embrace in order to be successful.
On this program, I focus on what you should spend most of your time focusing on. Focusing on what you can control as an investor makes more sense than searching for an answer to something that cannot be. Therefore, investors should focus on those items you can control, in order to put the odds in your favor.
The following, in my opinion, are three items that can provide investors with a solid path towards success. On the surface, it seems simple and straight-forward. While there are nuances, it is this simplicity and discipline that provides elegant sophistication and success.
Three controllable investment practices:
1) Manage risk
2) Control expenses
3) Pay attention to taxes
It does not sound like much, but it is the heart and soul of investment success. I hope you enjoy this program.
HOLIDAY GREETINGS FROM ME TO YOU
It is the holiday season and I want to take a moment to thank each of my listeners for supporting my program over the past seventeen years. Thanksgiving is a time for being thankful and there is no doubt that my relationship with KNBR and my listeners over the years has been a wonderful experience. I hope that every one of you has a blessed holiday season, much happiness and a very prosperous and healthy 2015.