1. I will not confuse entertainment with advice. I will
acknowledge that the financial media is in the entertainment business and their message can compromise my long-term focus and discipline, leading me to make poor investment decisions. If necessary I will turn off CNBC and turn on ESPN.
2. I will stop searching for tomorrow's star stock picker, as there are no gurus. Capitalism will be my guru because with capitalism there is a positive expected return on capital, and it is there for the taking. And for me to succeed, someone else doesn't have to fail.
3. I will keep a long-term perspective and appropriately consider my investment horizon (i.e., how long my portfolio is to be invested) when determining my performance horizon (i.e., the time frame I use to evaluate results).
4. I will continue to invest new capital and work my plan because it is time in the market-not timing the market-that matters.
5. I will adhere to my plan and continue to rebalance (ie., systematically buying more of what hasn't done well recently) rather than "unbalance" (ie., buying more of what's hot).
6. I will not focus my portfolio in a few securities, or even a few asset classes, as diversification remains the closest thing to a free lunch.
7. I will ensure my portfolio is appropriate for my goals and objectives while only taking risks worth taking.
8. I will manage my emotions by learning about and acknowledging the biases and cognitive errors that influence my behavior.
9. I will spend less than I earn and expect my elected officials to do likewise.
10. I will value true treasures in life outside of my investment portfolio.
