Fundamental Rule (75/25): never have less than 25% or more than 75% in stocks, but still the focus should be on stocks:
- sell them at an approximation of their tangible asset value ( approximation)
Invest in companies with: - ratio of earning to price (?)
- strong financial position
- prospect of earnings that will be maintained over the years
- ROCE (Return on Capital Employed) >= average of S&P
Look for industries that have the least amount of change, and stay in industries where the winner is already declared. In this regard, tech changes too much.
Invest in business owner’s that you are willing to marry family
As investor you should not forget
You cannot hope for better than average results by buying new offerings
For choosing ETFs:
- TER should not be above 0.5%