Quotes About Strategy

We all know that asset allocation is the most important part of our success

Then you need long-term government bonds. Fifteen percent in intermediate term [seven- to ten-year Treasuries] and forty percent in long-term bonds [20- to 25-year Treasuries].

The whole trick in investing is: "How do I keep from losing everything?" If you use the 200-day moving average rule, then you get out.

Bill Gates didn't ask, "How do I build the best software in the world?" He asked, "How can I create the intelligence [the operating system] that will control all computers?" This distinction is one core reason why Microsoft became not just a successful software company but also the dominant force in computing—still controlling nearly 90% of the world's personal computer market!

Asset allocation, 2. Diversification, 3. Tax efficiency.

an immediate income, your returns are reinvested in a tax-deferred environment so that when you're ready you can, at will, turn on the income stream you want for the rest of your life. You can literally have a schedule for what your income will be when you're 40, 50, 60—for every year of your life.

He smiled again and grabbed my arm. "It so simple," he said. Indexing is the way to go. Invest in great American businesses without paying all the fees of a mutual fund manager and hang on to those companies, and you will win over the long term!

Just like dollar-cost averaging, the discipline once again makes you invest in underperforming assets when their prices are low, so that you own lots of them when their prices go up.

You don't want to hesitate to get in the market trying to have perfect timing; instead, use dollar-cost averaging and know that volatility can be your friend

Asset allocation is everything!

What dollar-cost averaging really means is systematically putting the same amount of money across your full portfolio—not just the stock portion.

Remember, volatility can be your friend with dollar-cost averaging, and it can also allow for another technique that will keep you on track, "rebalancing

Okay, now you know the players that belong in your allocation buckets, and you know the key to building a winning team: diversify, diversify, diversify!

because it's really, really hard. If this was easy, if there was one formula, one way to do it, we'd all be zillionaires. One principle for sure would be get out of anything that falls below the 200-day moving average.

If you want to change your life you have to change your strategy, you have to change your story, and you have to change

His best single rant: "maximum diversification, minimal cost, and maximum tax efficiency, low turnover [trading], and low turnover cost, and no sales loads." How

But you have to take some of those assets off the table to reduce your exposure to risk and make certain that you keep some of the gains or profits you've made.

We have learned that nobody beats the market (except for a handful of "unicorns")! And by using low-cost market-mimicking index funds, we can outperform 96% of mutual funds and nearly as many hedge funds.

And finally, we learned that wealth without risk is a possibility. Sure, there is risk in everything, but we learned that certain structures will allow us to participate when the market goes up and not lose when it falls!

Rule 1: don't lose money. Rule 2: see Rule 1. —WARREN BUFFETT'S RULES OF INVESTING

There's an awful lot of luck relative to skill. Investing is 95% luck and 5% skill. And maybe if I'm wrong, it's 98 and 2.

Asset allocation, where to park your money and how to divide it up, is the single most important skill of a successful investor. And as we will learn from the masters, it's not that complicated! Low-cost TDFs might be great for the average investor, but you are not average if you are reading this book!

Warren Buffett's top two rules of investing? Rule 1: don't lose money! Rule 2: see rule 1.

Remember Warren Buffett's ultimate laws of investing? Rule 1: don't lose money. Rule 2: see rule