8 New Year’s Resolutions for Investors from Hirtle Calla
‘I resolve to never forget the difference between investing and speculating.’
January 04, 2010 11:43 AM Eastern Time
CONSHOCKEN, Pa.--(EON: Enhanced Online News)--The last 18 months have tested the mettle of every investor. This is an o
consider new investment resolutions for 2010, says Jonathan J. Hirtle, Chief Executive Officer of Hirtle Callaghan & Co., o
largest privately held investment firms.
Hirtle offers the following investment resolutions for individual and institutional investors alike:
1. I will remember that there is no free lunch. Stock market investing provides returns that are higher than returns from bon
equivalents, because stocks are almost always more risky than bonds and cash equivalents. Periodically that risk is revealed t
dislocation. That dislocation is the price I pay for higher returns. I will not commit more assets to stocks and stock-like invest
tolerate during the next dislocation.
2. I will always be skeptical – but never cynical. Skepticism is healthy. Cynicism is not. Doomsday pessimism is just the mir
in-the-sky optimism and both are highly unlikely. I will make prudent investment decisions based on likely, not unlikely, outco
3. I will conduct my own due diligence. I will not invest because a friend has, or because recent returns have been high. Most
investment strategies in the world are based on common sense. If I can’t understand the investment process, I will not invest.
4. I will stay diversified. No matter how compelling an investment or an investment strategy sounds, I will only believe a little
created and lost through concentration, and I dare not concentrate in a business or investment where I possess knowledge th
5. I will think of risk in total. That means my operating risk and financial risk, as well as investment risk. Only families and org
strong, reliable cash flows and low debt levels can afford to pursue extraordinary returns through a risky investment strategy.