Scanning through the financial media today I cam across an article published in the AGE on the 9th by John Collett. In the article Mr Collett outlines the 10 biggest things the global financial crisis has reminded investors. I think he is right on the money. The 10 items were:
1. There is no substitute for cash.
2. Simplicity should be favoured over complexity.
3. Nothing's guaranteed. Avoid capital-guaranteed products as they are hardly ever worth the cost of the capital guarantee.
4. Don't invest for tax.
5. Be ruthless on costs.
6. Don't put all of your eggs in the one basket.
7. Put yourself in the driver's seat. Pay fees rather than commissions to advisers.
8. Always ask for a discount.
9. Prefer listed investments to non-listed investments.
10. Don't be a guinea pig.
The article is well worth a read - Lessons from the GFC