James Montier (Behavioral Investing Blog and member of GMO’s asset allocation team) recently listed his thoughts on a set of principles for investing, via a guest post over at The Big Picture.
Although the “laws” are different than the Principles of Safe Investing on the Invest Safely website, the article is still worth a read for those of you looking to improve your investing process.
1. Always insist on a margin of safety
2. This time is never different
3. Be patient and wait for the fat pitch
4. Be contrarian
5. Risk is the permanent loss of capital, never a number
6. Be leery of leverage
7. Never invest in something you don’t understand
The Seven Immutable Laws of Investing
Barry Ritholtz – The Big Picture
The 10 Principles of Investing Safely