In this episode, Scott Becker shares six essential investing principles.
Chapter 1: Who is Scott Becker and what milestone did his podcast reach?
Chapter 2: What are Scott Becker's six quick rules for investing?
This is Scott Becker with the Becker Private Equity and Business Podcast. So happy recently to pass 7 million downloads with our tremendous team led by Jeremy Korn, Janelle Bunger, and Grace Keller. So just thrilled with that 7 million downloads on the Becker Private Equity and Business Podcast and highly ranked on the Apple rankings. So here are six quick rules for investing.
Chapter 3: Why is buying and holding for the long run important?
Chapter 4: Should you invest in index funds or individual stocks?
One, buy and hold for the long run. Just, just, Have enough money in equities. Keep it there for the long run. That's number one. Second is think index funds versus individual stocks. And again, going back to number one, buy and hold for the long run. Don't jump in and out of individual stocks. Really stick to index funds and don't jump in and out of them. Third is don't try and time the market.
Chapter 5: Why is timing the market considered a fool's errand?
Chapter 6: How should you allocate assets between equities, bonds, and cash?
This is a fool's errand. Don't try and time the market. So those are three rules so far. The fourth rule is know your allocation of assets, your equities to bonds, to cash. And my own thought is you need a conservative enough allocation that you don't want to sell into dips. You don't want to sell in the market crashes. You don't panic.
Fifth, which is also very important for maintaining that buy and hold strategy for the long run, is have enough emergency funds that you don't panic when things go in the wrong direction. You always have to have enough emergency funds so you don't have to panic. And the sixth is an anti-fragile rule. I don't care what all the advisors say.
Don't over-indebt yourself, one of the mortgage or anything else. Don't buy stocks on margin. Don't borrow to do investing. Keep on putting money away. Put in index funds. Buy and hold. Don't time the market. Know your allocation. Have an emergency fund. And don't get yourself over-leveraged. As we often say, Debt kills countries, companies, and families.
Thank you for listening to the Becker Private Equity and Business Podcast. Thank you very, very much.