On Investment: Decoding The Legends (IM 929)

The past few days I have been reading the investment strategy from world's famous investors from Paul Tudor Jones to Ray Dalio to Charles Schwab to Sir John Templeton. 

Different investor have different investment strategy and they apply what favors them the most. For example: consider Warren Buffet, he understands the fundamentals of growth companies and buys the shares of those companies and he never sells it. And companies keep growing and he keeps becoming richer and richer.

But there are few strategies that is embraced by all the great investors. The first common strategy is Diversification. The more the diversification, less the risk. Sir John considers to diversify not only in the stock sectors but he considers the stocks diversification in nations as well.

The second common strategy is Hold. Holding the shares for long term has so many positive outcomes. On one hand, the share prices goes up, no matters the present condition. On the other hand, if you don't sell, you don't pay taxes and the returns get invested again and again compounding your returns.