Rule 5: Stay Focused

Panos Mourdoukoutas () and Christopher Bates ()
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Panos Mourdoukoutas: Long Island University
Christopher Bates: Long Island University

Chapter Chapter 6 in Intelligent Investing in Irrational Markets, 2025, pp 69-78 from Springer

Abstract: Abstract Staying focused means three things: first, sticking with goals and priorities as defined in your financial plan, and the asset allocation and portfolio selection that serves these goals; second, adjust asset allocation and portfolio selection in response to changes in the macroeconomic and microeconomic conditions that give an advantage to one asset category over another, and to one stock over another. Third, stick with companies with sound economic fundamentals. Staying focused is easier said than done, as it takes patience, persistence, and discipline, very few investors can endure. Patience to perform “due-diligence,” to go over the economic and financial indicators that determine whether a company has sustainable competitive advantage and can maintain it; persistence to overcome the failures, setbacks, and temptations that may take you off your financial plan; and discipline to play the game right, to comply with all the rules and regulations: know what you are doing, work out all the details, and close your ears to sirens, who hype your emotions.

Keywords: Investment Goals and Priorities; Economic Fundamentals; Discipline (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/978-3-031-90010-5_6

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