Whitman’s Basic Investment Rules: Buy Safe and Cheap Safe = Financially Strong Company Cheap = Buy at 30%+ discount to net asset value
ACTION POINT
CONSIDER QUANTS
CONSIDER QUANTS Consider adding mutual funds run by reputable and leading edge quantitative research and strategy firms. Two masters of the art: – Cliff Asness of AQR Capital Management – Andrew Lo of MIT and AlphaSimplex Group
CONSIDER ROSENBERG’S “HIRP” INVESTMENT THEME
CONSIDER ROSENBERG’S “HIRP” INVESTMENT THEME “HIRP” = HEDGE INFLATION, RISK PROTECTION Consider making small portfolio adjustments Rosenberg suggests inflation hedge such as TIPS- Treasury Inflation Protected Securities
AVOID INVESTMENT LOSSES
AVOID INVESTMENT LOSSES Avoid Investment Losses Rules: – Buy quality companies selling at deep discounts – Invest with shareholder friendly managers – Keep some insurance in the form of cash and gold for portfolio protection
DON’T BE AFRAID TO INVEST IN YOURSELF
You are the best investment you can make!
DON’T ABANDON YOUR ENTIRE PORTFOLIO OF U.S. TREASURIES OR BONDS!
Review your bond positions – make sure they meet your income and diversification goals Bonds provide: – Diversification – Income – Stability over time U.S. Treasuries provide: – Liquidity – Guaranteed income – Guaranteed return of principal at maturity – A non-correlated asset
