Never put more than 5% of your liquid assets in one bet, this means any one investment idea; ie Buying 2 different Large Cap US stock mutual funds is not two different ideas. Diversify, and try to get assets that are uncorrelated is the modern schpeal. I look for companies that are undervalued with strong cash flows and durable competitive advantage ala buffet. I also look at technicals to help time buying and selling.
Never put more than 5% of your liquid assets in one bet, this means any one investment idea; ie Buying 2 different Large Cap US stock mutual funds is not two different ideas. Diversify, and try to get assets that are uncorrelated is the modern schpeal. I look for companies that are undervalued with strong cash flows and durable competitive advantage ala buffet. I also look at technicals to help time buying and selling.