The Oxford Club recently released four of its wisest investing strategies that have stood the test of time, and since the Club has been able to guide its members to profit and the protection of their assets for close to 30 years, people would be smart to listen to what the Club has to say. The first bit of advice focuses on the fact that it is best to keep a balanced portfolio that won’t fall apart when any one single investment goes under. This doesn’t mean that an investor should simply sink their money into a variety of stocks. Instead, on top of investing in different stocks, many of these stocks should be in different industries, and they should be a mix of preferred and common stocks.
The Oxford Club was founded by a group of investors, and among them were William Bonner, Agora Inc. founder. In 1991, the group switched from being known as the Passport Club over to the Oxford Club, which would be known as a financial club for investors who helped each other to become better at what they did. The second bit of advise that the Oxford Club recently released goes back to its founding principles, and this is to always have an exit strategy for any investment or set of investments. This will ensure that profits and principle are always kept safe.
The third principle that the Oxford Club talked about is that size matters, and this has to do with position-sizing and the importance of balancing out investments. Generally speaking, this has to do with knowing how much should be invested in one single stock. Along with this principle is one that everyone should heed, and that is to not make the mistake of letting emotions dictate an investment or how long one stays invested as it sinks. last, but not least, is the principle of cutting investment costs. The truth is fees add up, and these fees can eventually overtake an investors profit if he or she is not consciously maintaining focus on cutting them down. The best way to do this is to become educated in how to avoid middleman fees and how best position portfolios to avoid taxes as much as possible.
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