Not long ago Brad Reifler, a founder of Forefront Capital, has given some timeless advice to investors that was published in a Reuter’s article. The advise of composed of just a few major points.
One of the most important ones is diversification. By not putting all the capital in the stock market, the investors risk less since some other assets aren’t highly correlated with stocks.
The examples include precious metals, fixed income, and real estate. Additional diversification can also be done within asset classes. For instance, rather than investing in one or two stocks, invest in ten, preferably in different industries and countries. Remember, your first aim is to protect your capital. No capital means no possibility to earn returns.
Diversification alone doesn’t guarantee success. Brad Reifler also pointed out that it’s necessary to carefully look into investments prior to investing. So, don’t pull the trigger too quickly.
Another good point made applies to those individuals who use others to invest money for them. Brad said on Twitter that these can be financial advisors or even mutual fund mangers. Looking at their reputation, performance, and fees is much needed in order to avoid disappointments down the road.
Finally, you should know why you’re investing. By knowing so, you’ll be able to determine the time horizon as well as amount needed for reaching your goals. For example, if you’re 25 and investing for retirement, then your time horizon is 45 years.
Previously, Wikipedia makes evident Brad Reifler was a top trader at Refco. He has also founded and ran Pali Capital. Now, he’s heading Forefront Capital, a global financial services firm. Yahoo Finance has written about what Brad Reifler and Forefront Capital want before, and they continue to progress towards the future.