Canada will continue to act to ensure that lenders are prudent and that an increase in interest rates or a downturn in the housing market does not put economic growth at risk, the country’s finance minister said on Friday.
The Investing Kiss Rule
Follow the KISS rule – (K)eep (I)nvesting (S)uper (S)imple. First Respect the Risk!
1.) Invest in a minimum of 30 stocks which limits your risk by 70% and no stock weighting more then 5% of your portfolio.
2.) Pick 2-3 stocks from each of the 11 sectors for diversification.
3.) Make sure that when chosing from each sector the companies are either number 1 and number 2 in that sector in profitability and size.
4) Before investing their p/e multiple is 12x or less do not overpay in an overhyped market wait for a reasonable entry point.
5) Make sure all stocks chosen are dividend payers.
6) Then watch your portfolio grow over the long run and collect the dividends while you wait. Then repeat the process and watch your portfolio keep expanding.