However, I also understand that in the stock market there are no guarantees! It is for this reason and this reason alone, that diversity is a necessity. If I knew for certain that CMA would continue its program of raising their dividend every year, and that the next 14 years would provide better than 15 percent return on my money, I would only own CMA stock. It is because of this ‘risk of no guarantees' in the stock market that the rewards for investing in the stock market are much higher than a passbook savings account, CD's or Bonds.
Your initial planning is the key. The number of hours you can spend, getting your identity package done, setting up your office, making the contacts, making your calls, and setting your goals (both short term and long term). In effect, getting your ducks in order, being sure all your P&Q's are taken care of, and then just getting started.
Most of my clients have found that the investment results we've obtained with their personal IRAs were far superior to those yielded by their employer 401k plans or their personal investing efforts. This has been mainly due to a combination of better choices and a methodical approach to investing which has kept my clients in the market during good times and out of it altogether during severe declines.