10 Timeless Investing Principles

When times are good, it's tempting to throw caution to the wind. This is especially true during a strong economic environment. Over the 11-year bull market, which ended in March, stocks rose steadily, companies were able to easily obtain financing, and many professions offered secure paychecks. Many investors took consistent positive returns for granted, and, consequently, made questionable decisions when it came to their personal finances.

To quote legendary investor, Warren Buffett, "You only find out who is swimming naked when the tide goes out."

Over the past two months, the tide went out fiercely, with the market plunging at a historic pace. In a matter of weeks, the S&P 500 dropped 34% and trillions of dollars in shareholder value vanished. This experience has been a wake-up call that the good times don't last forever. It's also a harsh reminder of the dangers of straying too far from a prudent investment plan.

A judicious strategy incorporates timeless investment principles, many of which have become clichĂŠs over the years. These