2 Must Reads For DIY Investors

Source: Capital Pixel

For this blog, I am constantly on the lookout for succinct articles that I believe offer great education value for DIY investors and point them in a practical direction in their investment process.  One of the benefits of living in the information age is that such articles are at our finger tips.

Here is one from Andrew Hallam, author of Millionaire Teacher, that offers really all the essentials of successful investing.  It tells you how to diversify.  It tells you how to use your time economically.  And it tells you how to rebalance.  Pay close attention because he points out the important point that accumulators really want markets to fall.  It is a 10-minute read. Enjoy!

Millionaire Teacher Prepares to Buy

To build on what you have learned, I suggest you get his book, Millionaire Teacher:  The Nine Rules of Wealth You Should Have Learned in School, and read that.  In a weekend, you will learn about an approach to investing that has outperformed 90% (it's hard to beat the lucky ones! ;)) of professional managers.  Buying the book and spending a weekend with it could turn out to be the best investment you ever make!

On a different front -  here is a good piece from Morningstar on Treasury TIPS:  Are TIPS as Safe as You Think?  It notes there are two points to keep in mind in valuation decisions:  inflation expectations and the overall level of rates.  A case can be made that they are cheap on the first count but expensive (along with the overall bond market) on the second.  Pay special attention to the argument that shorter maturity TIPS may offer a special opportunity.

One point not mentioned is that TIPS can be easily bought from the Treasury at Treasury Direct and, thereby, fund expenses avoided.  It is always worthwhile to think about expenses but especially here where yields are so low.  I also recommend the comments section for Morningstar articles.  The commenters there tend to ask very good questions and offer useful observations.