In choppy markets, many investors turn to dividend-paying stocks to help ‘steady the ship’. Although that’s not the only option available to them, of course. What about Benjamin Graham‘s baby, value investing, for instance? I put the question to our Twitter followers, and while there was a healthy variety of responses, one winner edged it: growth investing.
It was heartening to see, especially as I admit that I expected income investing to walk it. But truly, diversification is a core component of Foolish investing. I’d talk about the dangers of putting all one’s eggs in one basket, but I don’t want to preach to the choir.
And besides, I can let these Fools say it for me:
So while growth investing edged the poll, since I’ve brought up the importance of diversification, let me briefly run through The Motley Fool’s seven core principles of investing.
- Buy businesses, not tickers
- Be a lifetime investor
- Diversify your holdings
- Fish where others aren’t
- Check emotions at the door
- Keep score
- Be Foolish and have fun
As I write, we’re seeing something of a global stocks rally. Throughout it all, I’ve been buying shares since it’s impossible to time the market, and I’d rather spend time in the market. I hope you have, too!