This article starts off by Rich Tavis personal experience. That he didn’t really have an investment plan in how to buy stocks and funds. When he saw one he liked, he would buy it, just like picking up shells from the beach. That he is a 34 year old man, from Minneapolis, and is a high-tech electronic-equipment salesman. Tavis got with the program and started to research funds and built an investment plan. That he got rid of his dud funds and really started to pay attention to what matters. That Tavis feels like he is on track now and anyone can get on track with the use on the seven tips.
Tip number one was to dump the slackers. Treat a bad fund like a bad relationship out of there without looking back. Identifying the bad fund may take a little work. A way to find the bad fund would be to see how long they have been in a bad patch. If a fund is in a bad patch and it becomes their way of life, it is time to get out of that fund. The article gives a website to visit to see funds that preform relative to others that invest similarly. Then the article gives examples of funds that have lost their way.
Tip two was learning to love consistency which means to find funds that consistently produce above-average results and there are some funds listed. Tip number three is to slim down your portfolio, this tip is to focus on less funds, not to have an over whelming amount of money invested. There is an example of a fund that still struggles to regain its glory. Number four tip is, take advantage of youth, new funds tend to perform better than old ones. Then goes into detail of why this is true and gives a list of funds to look for. Tip five is to respect risk.
This tip is taking a chance; make a risk, in an investment, for the biggest risks often end with a big reward. The sixth tip is buy funds that put you first. Always ask the questions how much does the fund charge and do the managers have confidence in the way they manage money. The last tip is to stay ahead of the trend. In this tip go ahead and take a breath and invest in a fast growing company for the most part they start off bad but then turn good so it’s a chance to take to make some good investments. The seven tips together helped Rich Tavis make an investment plan that he feels confident about and we can to if we follow the tips.