The Prophet in His own words:
1. Investing is not nearly as difficult as it sounds.
2. When all else fails, fall back on simplicity.
3. Time marches on. Time dramatically enhances capital accumulation as the
magic of compounding accelerates.
4. Nothing ventured, nothing gained. It pays to take reasonable interim
risks in the search for higher long-term rates of return.
5. Diversify, diversify, diversify.
6. The eternal triangle. Never forget that risk, return, and cost are the
three sides of the eternal triangle of investing.
7. The powerful magnetism of the mean.
8. Do not overestimate your ability to pick superior equity mutual funds,
nor underestimate your ability to pick superior bond and money market funds.
9. You may have a stable principal value or a stable income stream, but you
cannot have both.
10. Beware of fighting the last war. You should not ignore the past, but
neither should you assume that a particular cyclical trend will last forever.
11. You rarely, if ever, know something the market does not.
12. Think long term. Stay the course.