The Richest Man in Babylon - Book written in 1920s by George S.Clason still holds wisdom in terms of investing, business, money - http://amzn.to/2wTuigD
One of the chapters explains 5 rules of gold that wise man should follow. Below is my short explanation of how to apply those rules in modern world.
1. Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.
Make sure to save at least 10% of your net earnings..
2. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
You can invest in bonds, stocks, low cost index funds(my personal preference), investment funds, ISA stock(UK only as I am aware), gold silver, crypto currencies such as bitcoin, ethereum. By buying stocks, investment funds and indexes you can also benefit from dividends. Avoid investing in stocks that do not pay dividends.
3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
Invest your money wisely, avoid high leverage, get rich quick schemes, if something is too good to be true it's probably scam. When you are investing make sure to diversify your portfolio by investing in different types of markets.
4. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those who are skilled in its keep.
Avoid investing in business you do not understand. This is very simple rule that greatest investor Warren Buffet follow.
5. Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
One of the chapters explains 5 rules of gold that wise man should follow. Below is my short explanation of how to apply those rules in modern world.
1. Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.
Make sure to save at least 10% of your net earnings..
2. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
You can invest in bonds, stocks, low cost index funds(my personal preference), investment funds, ISA stock(UK only as I am aware), gold silver, crypto currencies such as bitcoin, ethereum. By buying stocks, investment funds and indexes you can also benefit from dividends. Avoid investing in stocks that do not pay dividends.
3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
Invest your money wisely, avoid high leverage, get rich quick schemes, if something is too good to be true it's probably scam. When you are investing make sure to diversify your portfolio by investing in different types of markets.
4. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those who are skilled in its keep.
Avoid investing in business you do not understand. This is very simple rule that greatest investor Warren Buffet follow.
5. Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
Well connected with 3rd rule but it is very important to follow. Again I will quote Warren Buffet -"The first rule is not to lose. The second rule is not to forget the first rule".
Comments
Post a Comment