JF2767: 5 Fundamental Tips for Investing | Actively Passive Investing Show with Travis Watts

Actively Passive Show host Travis Watts has dedicated his career to investing. After years of working in investor relations, reading hundreds of books from expert authors, listening to podcasts, and attending seminars, he’s compiled the top five fundamental tips he has heard again and again from expert investors:

Focus on the fundamentals. People often confuse investing with speculating, Travis says. They also try to time markets, but no one can consistently predict what will happen in the long term. He argues that it’s best to be a long-term investor who focuses on the fundamentals rather than speculation.
You can’t be good at everything. It’s important to double down on what is working for you. Travis recommends the 80/20 rule when it comes to risk-taking: He allocates 80% of his personal investment portfolio into what he knows and understands the best, then allocates the other 20% experimentally into things he’s still learning and grasping.
Learn, learn, and learn some more. You have to continually educate yourself in order to produce long-term success. As Warren Buffet has said, “The more you learn, the more you earn.” Whether it’s books, podcasts, YouTube videos, seminars, or through mentorship, never stop self-educating.
Not all your investments are going to be amazing. You’re not always going to hit it big with every investment you make. You’re occasionally going to lose money, and sometimes you will miss opportunities, Travis says. That’s just part of the unpredictability of life. “You have power over your mind — not outside events. Realize this, and you will find strength.” —Marcus Aurelius
Don’t unlearn old tricks. Don’t forfeit the old-school principles that got you where you are today. Of course, it’s great to learn new things, but it’s also important to remember and continue to practice what made you successful in the first place.