Preston's Investing Axioms
My current thoughts on investing.
FeedbackBy Preston Hunt, 19 January 2005

1. Do not use professional money managers.

2. Avoid actively managed mutual funds.

3. Avoid loaded mutual funds.

4. Buy individual equities judiciously, and even then no individual equity should be more than 4% of total portfolio.

5. Avoid stocks focused in the same area as your employer's

6. Percentage of bonds in your portfolio = Age-20 (round down to nearest 5).

7. Put small cap funds (and anything with large turnover or dividend potential) into 401k or IRA to take advantage of tax savings.

8. Put large cap funds (and anything with low turnover) into regular investment accounts.

9. Diversify, diversify, diversify.

10. Believe the Efficient Market Hypothesis

11. Don't make investing decisions solely to save money on taxes.

12. Always max out any available tax-free and tax-deferred accounts

13. Park your cash in a high-yielding account

Fund Recommendations

To invest in the entire US market:

To invest in big US companies only:

To invest in small and medium companies only

To invest in the international market (everything except US):

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