Advice from the Masters

1. On diversification:

"Diversify your investments" - John Templeton
"Diversification is a hedge for ignorance" - William O Neil

2. On averaging down:

"You have to understand the biz of a company you have invested in, or you will not know whether to buy more if it goes down" - Peter Lynch
"Averaging down is an amateur strategy that can produce serious
Losses" - William O Neil


3. On bottom/top fishing

"Don't Bottom Fish" - Peter Lynch
"Don't try to buy at the bottom or sell at the top" - Bernard Baruch
"Maybe the trend is your friend for a few minutes in Chicago, but
for the most part it is rarely a way to get rich" - Jim Rogers
"I believe the very best money is made at the market turns. Everyone
says you get killed trying to pick tops & bottoms and you make all
the money by catching the trends in the middle. Well for 12 yrs
I have often been missing the meat in the middle but I have caught
a lot of bottoms and tops" - Paul Tudor Jones

The masters do not agree on how to make money but they do agree on one thing;
Losses!

"my basic advise is don’t lose money" - Jim Rogers
"I’m always thinking about losing money as opposed to making money
Don’t focus on making money, focus on protecting what you have"
- Paul Tudor Jones
"Investors 2 rules of investing: 1. Never lose money 2. Never forget
Rule NO. 1" - Warren Buffet
"The majority of investors stubbornly hold onto their losses when
it small & reasonable. They cud get out cheaply but being emotionally
involved and human, they keep waiting & hoping until their losses
get much bigger and cost them dearly"- William O Neil
"Learn to take losses quickly and cleanly. Don’t expect to be right
all the time. If you have a mistake, cut yr loss as quickly as
possible"- Bernard Baruch