Investment Tit Bits

An article that I read in MarketWatch.com. A little inscrutable but I am sure with time and wisdom, the meaning would become clear.

1. Concentrate on quality when picking stocks. Buy the shares of solid companies with long histories of rising profits.
2. Don't be greedy. Aim to make your profit and run. Like they declare on Wall Street: Bulls make money and bears make money but hogs never make money.
3. And as that legendary investor, Bernard Baruch said, "Nobody ever went broke selling too soon."

Give the graduates still more guidance -- that's what they want to hear from you. Some solid advice:

• Have a bias for action.
• Favor investing over saving. That is, put more money into stocks than in savings accounts.
• Practice dollar-cost averaging, investing a fixed amount from every paycheck. When markets go up, you can congratulate yourself for having made some wise choices. When markets go down, you can pick up some bargains. Last month your favorite stock cost you, say, $50 a share; this month, you can get it for only $40.
• Take advantage of every tax-deferring investment program that you can: IRA, 401(k), 403(b), SEP, Keogh. When Uncle Sam wants to give you a tax break, seize it.