Thursday, July 3, 2008

Finding the good soil

Imagine you are growing a garden, you definitely want to have some good soil. Also, you can expect there to be some rainy days and some sunny ones. Both are needed for a lush green garden. Once a garden starts to grow, don't disturb the plants by uprooting or replanting.


You can compare investing to growing such a garden and the soil to be your portfolio. The portfolio goes through some bear market conditions akin to stormy weather and also through a period of exuberance like the bright sunny days. The key is to know what kind of portfolio you have by knowledge of what you own. Do not buy and sell unnecessarily and keep yourself informed by continuous learning.