Among the readers with whom I have had private conversations, the biggest investing regrets have generally been one of two things:
(1) Either the person invested extensively in bank stocks prior to the financial crisis of 2008-2009 that wiped out 75-95% of the value of many supposedly safe financial stocks, or:
(2) They owned some high-quality stocks that they had to sell to meet an inevitable need that crops up over the course of an investing lifetime.
It is the second point that I want to discuss.
Successful investing over the long-term, defined as regularly increasing your purchasing power over most rolling three-year periods, is quite easy. If you figure inflation is going to run somewhere around 4% annually over the next fifteen years and you had to make a list of twenty companies that have a very good chance of increasing profits by more than 4% annually over the … Read the rest of this article!