Avoid making investment decision based on short-term market movements’ predictions, rumors, and gossip.
Fisher, a great investor, warns buying a company without having sufficient knowledge of it may be dangerous. You need to do your homework. You need to think about every investment you make as you personally investing as an owner of the company. Would you buy the company if it was a local shop? Think of it that way and invest, don't gamble.
If you want to learn more, check out these resources:
- Exciting Ways to Invest Your Money (Not)
- Stay Lazy, My Friend
- What Do You Tell The Successful Stock Picker?
Finally, be sure to look back at our other 365 Investing Tips.