There are a number of profitable investment approaches. For any strategy to work, though, it is important to follow it consistently, once having satisfied oneself that the means chosen is a good one. But because there are so many ways of going about the business of building assets into a significant nest egg, it is also best to choose a system that fits one's own personality. Here is just one way. It captured my imagination over a decade ago and has worked OK for us. It may for you as well. It is as simple as 1, 2, 3.
Professional investment managers were asked what would be a good approach for the average investor who wanted to use stocks to get ahead with investing. They assumed that such a person probably would not be terrific at analyzing and picking stocks for him or herself or at knowing when and what to sell.
1. Get suggestions from financial consultants and/or good investors on the best investments to buy and hold essentially forever and buy a portfolio of ten of them.
2. But since even the finest investment professionals make mistakes, after each year, from the initial purchases, sell off the asset that has performed the worst, putting the net proceeds into the asset which has performed the best.
3. However, once the number of assets has thus been reduced to five, these remaining high performers should be held "forever."