6. Building a Portfolio

Newbies should not get carried away with their first investments. They might get lucky at the first few shots but their luck will eventually run out. As a new investor you must follow a few time-tested Golden Rules. First – Start with a small amount – so that you will not dry out if you lose out a couple of times. Second – Have realistic expectations – always remember – it took even Warren Buffet a long time to get rich. Third – Learn from failures – the best deal is get back up on the horse after falling off it. Keep your chin up. Fourth – Invest in what you know- always invest in companies and sectors you are familiar with. Steer clear of unknown sectors. Fifth – Don’t get emotional – be disciplined and pragmatic in your approach. Don’t become another Midas.