I occasionally read the print edition of the Wall Street Journal.  Today, they had their quarterly analysis of fund investing which an article, Five Lessons From a Wild First Half shared the same sentiments I have about investing.

Make Plans and Stick to Them

This is a fairly common theme preached by just about anyone who comments on investing in the stock market.  If you are investing for the long-term, you need to see past the latest market movements and maintain your focus on your investment goals.

Spend Less, Invest More

This is a pretty good concept I like but it is not what we think.  Here, WSJ talks bout how we would need to invest more if the current market conditions are an indicator for a lower return on our investment in the short term.

Compounding at 12% a year, a $10,000 annual contribution to a stock fund grows to $100,000 in just under seven years, but at 6% a year, you’ll need to invest $11,997 annually to get there in the same time.

This is certainly a great eye-opening statement.  It really makes you think about how you manage your expenses and what you have to do to reach your goals under current market conditions.

Don’t Get Greedy

This is mostly about controlling your risk exposure.  The closure you are to retirement, the more you need to be aware of preserving your investment capital.

Keep Costs Low

This is another common sense sermon you hear, purchasing funds with a lower expense ratio will result in a bigger return on your investment than a fund with higher expense ratio.

Reduce Company Ties

Bear Stearns, Enron, Countrywide.  E’nuff said.

For those of you in the unknown, the less exposure you have to susceptible companies, the greater the likelihood you will avoid any significant loss of capital.

Any other lessons you think should be added here?