Investment Lessons From 2014

Every year, the markets provide us with some valuable lessons about prudent investment strategies. Many times, the markets offer investors a remedial course that covers lessons it had imparted previously. That’s why I like to say there’s really nothing new in investing, only investment history you don’t yet know.

Last year provided us with 12 lessons. As you may note, many of them make repeat appearances over the years. Unfortunately, many investors fail to learn from these lessons, and instead keep replicating the same errors. It reminds me of how Einstein defined insanity. That said, one of our first lessons of 2014 is a perennial favorite. It’s that diversification is as important as ever.

Lesson 1: Active Management Is A Loser’s Game

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