Good Advice

[dan_s]

The View From the Summit
4/30/2014 By Robert Rapier
The Investing Daily Summit

In his weekly article Robert lays out his personal philosophies for creating long-term wealth. They are:

> Spend less than I earn and invest the rest [After turning 60 I am committed to only buy something if I can pay cash.]

> Minimize personal debt

> Invest in businesses I understand [This is why almost all of my investments are in the energy sector.]

> Understand the risk level [Keep an eye on the macro business environment that will impact oil & gas prices.]

> Avoid investments that are dependent on government subsidies and/or mandates [Avoid wind, solar and biofuels]

> Identify long-term trends and invest accordingly

> Have an exit strategy

[par_putt]

I think most people now a days can't get past the simplest ones for us old guys.
That would be the first two.

[dan_s]

I agree. I have two sons and I preach to them both about starting to save for retirement now. The one who is a dentist in Dallas is saving a little but the one in Iceland is barely making it. Moving to Iceland without a job was not the smartest move!

I believe eventually the "chickens will come home to roost" and inflation will eat up a lot of peoples savings. This is one reason, I think investing heavily in oil is smart. Crude oil is a natural hedge against inflation.