Building wealth through stock

Conclusion by author

Guides to successful investing:

1. Keep your expectation in line with history. Historically stocks have returned between 6-7% after inflation over the last two centuries and have sold at average P/E ratio of about 15.
2. Stock returns are much more stable in the long run than in the short run.
3. Insist on lower transaction cost.
4. Value stocks (lower P/E ratios and higher dividend yields) have superior return and lower risk.
5. Establish firm rule to keep your portfolio on track.