How to Grow Your Wealth for Decades Without a Single Losing Year

by Mark Ford, Casey Research:

Maybe I’m lucky. Or maybe it’s just common sense.

I’ve been involved in the investment advisory business for 30 years. And except for a few early mistakes buying real estate, the big financial hoaxes and bubbles that devastated so many investors never burned me.

That made a huge difference over time. It allowed me to grow my net worth year after year without a single year of loss.

I learned several lessons about growing wealth and avoiding the biggest mistakes average investors make.

The financial life of the typical investor is marked by a plethora of hopeful speculations. Only a few dozen, at best, achieve their promise. My investment history is less exciting but more profitable.

I get into trends only after they’re proven, I get out as soon as they don’t make sense, and I turn my back on 9 out of 10 opportunities that come my way.

For example, in the 1980s, penny stocks were the rage. The financial press was full of stories about investors who got rich by buying little-known companies at 50 cents per share.

My boss invested in one and tried to convince me to do the same. I was tempted… but something inside me said to let this bus pass me by.

Read More