Edmond Jackson’s tips to avoid investment mistakes and accumulate wealth – Have a flexible investment approach

He previously wrote ‘Taking Stock’ in The Sunday Telegraph. He holds a degree in economics & politics from London University plus the Investment Management Certification.

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“Things rarely turn out as one expects, so be ready to evolve your rationale in the light of new information,” he says.

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“Economic change means that intrinsic value needs regular re-appraisal,” he says.

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“There is nearly always some kind of bias, like an infectious trend in social psychology. Or just plain old greed and fear. Discerning when the trend has sense or nonsense, and its relation to underlying values, is vital,” he says.

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“Acquisitions are a classic problem area. Add in the factor of stock market bias and you have a recipe for boom-to-bust,” he says.

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“Enterprising investors should keep a watch list of potential targets. Once an attractive risk/reward profile is perceived, dealing volumes and/or relevant news can be the necessary trigger for the stock to converge on intrinsic value,” he says.

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“A stock may rate a satisfactory hold – yet selling down is logical if you find a better alternative. One’s optimum level of portfolio activity needs to consider tax and transaction costs,” he says.

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“Nurture and listen to your own intuition,” he says.

(Disclaimer: This article is based on Edmond Jackson’s various interviews and speeches.)

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