How to Make a Million – Slowly

Chapter 2

My 12 guiding principles to making a million slowly

These are the rules or principles that I’ve followed over the past 50 years of investing. I’ll talk about them in more detail as I go through the book, but taken as a whole, these provide some key lessons for the investor.

1. Endeavour to buy shares on modest valuations – hopefully with an attractive yield and single-figure price earnings ratio and/or discount to net asset value/real worth.
2. Ignore the overall level of the stock market. Don’t make judgements on the macro outlook – leave that to commentators and economists. Focus on your particular selection.
3. Be prepared to hold for a minimum of five years.
4. Have a broad understanding of the PLC’s main business activity – one which ...