Equity Mutual Funds Are The Perfect Solution

There's No Use Diversifying Into Unknown Companies Just For The Sake Of Diversity. A Foolish Diversity Is The Hobgoblin Of Small Investors. That Said, It Isn't Safe To Own Just One Stock, Because In Spite Of Your Best Efforts, The One You Choose Might Be The Victim Of Unforeseen Circumstances. In Small Portfolios, I'd Be Comfortable Owning Between Three And Ten Stocks.

Spend At Least As Much Time Researching A Stock As You Would Choosing A Refrigerator.

You Have To Keep Your Priorities Straight If You Plan To Do Well In Stocks.

You Just Don't Know When You Can Find The Bottom.

A Price Drop In A Good Stock Is Only A Tragedy If You Sell At That Price And Never Buy More. To Me, A Price Drop Is An Opportunity To Load Up On Bargains From Among Your Worst Performers And Your Laggards That Show Promise. If You Can't Convince Yourself "when I'm Down 25 Percent, I'm A Buyer" And Banish Forever The Fatal Thought "when I'm Down 25 Percent, I'm A Seller," Then You'll Never Make A Decent Profit In Stocks.