My year end review of the lessons provided by 2007 is now up at Real Money.
The details are at the subscription only site, but here are the bullet points:
• Ignore market rumors
• Buy sector strength (Corollary: avoid weak sectors):
• Never blindly follow the “Big Money” (a/k/a Professionals make dumb mistakes also):
• Day-to-day stock action is noise
• P/E matters less than you think
• Ignore deteriorating fundamentals at your peril
• Nothing is more costly than chasing yield
• Know what you own
• Simple is better than complex
• Stick to what you do best
• Fess up!
• Risk management matters
• The Trend is still your friend
Its on the subscription only site, but I will try to get it moved to the free TheStreet.com section tomorrow . . .
Lessons From 2007: A Baker’s Dozen
RealMoney.com, 1/2/2008 6:54 AM EST