The Investing Playbook (for 2025 and beyond)

Just like most sports have rules and playbook, I believe there are some tenets that should be adhered to, in the field of finance. I called them “COMMANDMENTS”. Here are my favorite Ten Commandments of Investing:

1. Understand your financial goals: Before making any investment decisions, it is important to have a clear understanding of your financial goals and objectives. This will help you determine the most appropriate investment strategy for your needs.

2. Diversification is key: Diversifying your investment portfolio across different asset classes, industries, and geographic regions can help reduce risk and maximize returns.

3. Risk vs. return: All investments come with a certain level of risk. It is important to understand the relationship between risk and return, and to carefully assess your risk tolerance before making any investment decisions.

4. Time horizon: Your investment time horizon, or the length of time you plan to hold an investment, will impact your investment strategy. Generally, longer time horizons allow for more aggressive investment strategies, while shorter time horizons may require a more conservative approach.

5. Costs matter: Investment costs, such as fees and expenses, can eat into your returns over time. Be sure to carefully consider the costs associated with any investment before making a decision.

6. Stay informed: Keeping up-to-date on market trends, economic indicators, and investment news can help you make more informed investment decisions.

7. Rebalance and Monitor your investments: Regularly review and monitor your investment portfolio to ensure that it continues to align with your financial goals and risk tolerance.

8. Avoid emotional decision-making: Emotional reactions to market fluctuations can lead to poor investment decisions. It is important to remain disciplined and stick to your investment strategy, even during times of market volatility.

9. Seek professional advice: If you are unsure about where to invest or how to build a diversified portfolio, consider seeking advice from a financial advisor or investment professional.

10. Be patient: Investing is a long-term endeavor, and it is important to be patient and stay disciplined, even when markets are volatile. Remember that successful investing requires time and commitment.