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Don’t Make Me Say I Told You So 271

Although it can seem extremely complex and be frustrating
at times, investing can be relatively easy if you follow basic

tenets, such as:

► Investing for growth, using a diversified portfolio of
quality stocks.

► Investing for the long-term by using a buy-and-hold

strategy.

► Not trying to time the market or react to current events
by changing your investment strategy.

The majority of investors, however, have trouble sticking
to an investment plan because they fall prey to either fear or

greed. Today’s wired world means that investors are constantly
bombarded with financial news. Investors have shown that

they cannot set aside their fear, ignore all of the noise and
stay invested in down markets, nor avoid the temptation to

get greedy and jump on the investment-bubble bandwagon,
hoping for quick riches.

Over the last couple of decades, the average investors
managing their own portfolios have significantly

underperformed in the market as a whole. We discussed the
fact that investors have historically poured money into stocks

when the market is climbing, and then pulled money out near

Chapter 6: Your Action Plan