Two major factors have limited the profits realized by most investors: failure to diversify, and falling into traps that we will call don'ts.

Investors who have seen the dot-com bubble burst still tend to follow the crowd. Recommendations from cable channel sources, friends and colleagues tend to promote this. The best recent example is the “China” phenomenon, urging investments in natural resources that China needs so badly.

Mutual funds advertise performance and generally feature numbers from one to three years. The recovery in 2003 has helped a number of funds to generate impressive three year performance averages. However, it is unwise to consider anything less than a five year performance record, and ten years is preferable. This reflects a variety of market conditions.

In 1990, a theory won favor that recommended investing in more volatile securities in order to generate greater gains. This theory has not stood the test of time, in fact, there is no correlation between volatility and increased return.

Steady growth, over time, through good markets and bad, is the only effective way to build an investment portfolio. We have developed a number of models, reflecting aggressive, mid-range and conservative investment philosophies.