Investing in stocks, index funds, and Bitcoin can lead to financial success with patience, according to Professor Erwin Heri. In his book “The Eight Commandments of Investment,” Heri outlined basic rules for investors during a challenging time for the stock market in 2002. Although new investment opportunities have emerged since then, his principles remain relevant today.
Heri encourages investors not to leave money idle in bank accounts and recommends strategic investments in stocks for long-term wealth accumulation. He advises against market timing and emphasizes the importance of focusing on long-term strategies using savings plans, index funds, or ETFs. Diversification is key to managing risks, especially in the stock market where individual stock risks can lead to significant losses.
While investing in Swiss stocks due to stable companies and no currency risk is beneficial, Heri also suggests considering foreign markets cautiously due to currency risks and potential tax implications. Understanding individual financial obligations and goals is crucial when dividing investments among different asset classes. Heri recommends aligning investment structures and durations with specific goals to avoid mixing objectives.
Heri acknowledges the appeal of exploring other investment options like digital currencies such as Bitcoin, which he considers speculative investments. He advises investors to remain skeptical of high-return promises and seek to improve their financial knowledge to make informed decisions. In summary, Heri’s principles emphasize strategic, diversified, and patient investing to build wealth over time while remaining cautious of speculative opportunities.
