Wednesday, July 14, 2010

Successful DIY Investors

I recently read William Bernstein’s The Investor’s Manifesto. He wrote this in the aftermath of the recent stock market crash. Bernstein seeks to help investors regroup and reminds them of the strategies that lead to long term investing success.

In the foreword to the book, Bernstein identifies the characteristics of successful investors:

  1. They possess an interest in the process of investing.
  2. They have a basic knowledge of probability and statistics.
  3. They have a firm grasp of financial history.
  4. They have the emotional discipline to execute successful investing strategies.

How many self-directed investors truly possess these qualities? Indeed, how many investment advisors can make this claim?

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