Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Thursday, October 17, 2013

7 Rules of Investing


The host of CNBC’s Mad Money, Jim Cramer, says some of the simplest rules for investing are the most relevant.  Here are seven of his top tips to help today’s personal investors: 

  1. Don’t own too many stocks worth less than $10.
  2. Own around 10 stocks at any given time.
  3. Diversify, not only in terms of companies and sectors, but also in terms of geography, strategy, strengths, and weaknesses.
  4. Don’t undervalue the importance of dividends.
  5. Don’t use market orders; use limited orders instead.
  6. Never purchase stocks on margin.
  7. Spend at least an hour a week keeping up with the companies in your portfolio.

See Kurtis Droge, Jim Cramer’s 7 Basic Rules of Investing, Wall St. Cheat Sheet, Oct. 15, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.


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