Skip to content
View The Trailer
Neubert's Rules of Investments to ALWAYS Avoid E-mail
Written by David Neubert   
Tuesday, 01 May 2007

Here are some rules of investments to always avoid.  Following these rules have saved me from many financial losses and from guilt.  Breaking these rules has cost me money.  Hopefully, I can save you from losing money like I did when I broke my discipline:

1. Never invest in entertainment and culture.  Donate and support but don't invest.
2. Never invest in Broadway shows (they don't call them angels because they are greedy investors).
3. Never invest in airlines.
4. Never investing in cutting edge technology.
5. Highly paid management means management that focuses on their own compensation, not on shareholder returns.
6. Avoid stocks associated with glamor and celebrity - Planet Hollywood, Martha Stewart, etc.
7. Don't invest in companies that will make you lose sleep over guilt.  For me, these are companies that make products that kill people or that I feel should be owned by the government (prisons, weapons, tobacco, private military). This one is my personal choice and one that helps me sleep at night.  And when I sleep well, I make better trading decisions and thus make more money.  Some people may not need this rule, while others need a stronger rule that includes alcohol, gambling, refineries and metals mining. 

Confessions and Disclosures:
I own Sirius Satellite Radio (SIRI) and Vonage (VG).  Sirius breaks rules 1 and 4.  Vonage breaks rule 4.  And I am suffering my deserved losses.   And while I bask in the glory of the returns I've made being long US Large Caps this year vs small caps.  I still kick myself for breaking my own rules.

do not give investment advice. Do your own research. Do not rely on anything in this weblog to make investment decisions. I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security. Options may be for me but they are are not for everyone. Futures are highly speculative. You can lose more than your initial investment in futures.


Airlines  Socially Responsible Investing 

Comments (0)add
Write comment

busy
Tag it:
YahooBuzz
Stumble
Facebook
Digg
Delicious
Technorati
YahooMyWeb
Digg
Hugg
Reddit
Spurl

David Neubert
About the author:
David Neubert ran the largest trading desk in the world.
Read More >>
Last Updated ( Tuesday, 01 May 2007 )
 
< Prev   Next >

Top

Members