1st, Keep it SIMPLE

Trend Following. A simple way to become your own investment advisor.

1st, Keep it SIMPLE

"The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective."..........Warren Buffett

As Dick has said over and over again, keep it simple.

Dick has the following requirements for any investment plan:

1) The plan must be easy to understand and simple to follow.

2) The plan must include a sell strategy to avoid significant declines.

3) The plan must not take up a great deal of time. Minutes per week is all that should be required.

4) The plan must not cause stress and anxiety. If it does, no one will stick with it long enough to reap the rewards of long term compounding.

5) The plan must not cause a change in one's lifestyle nor interfere with one's occupation.

6) The plan must not cause disharmony in the household.

7) You must believe tha plan has the potential to attain the goal of 20% annualized compound growth over the long term.

The Fabian Compounding Plan has only five simple steps.

The Fabian Compounding Plan has only two rules.

When To Buy and When To Sell.

The other steps are to give you the opportunity to enhance your performance.

Step One: Keep It Simple.

If you want anyone to do anything, over the long term, to maximize the benefits from compounding, it better be simple. Otherwise people simply won't do it.

Also, if it's not simple and they don't feel comfortable following the recommendation, people will be reluctant to commit 90% or more of their investment dollars instead of the less than 20% most currently invest.

Simplicity is important for emotional reasons. While you are using the Fabian Compounding Plan, you will know why the plan says you should be in or out of the market. When the switch signal comes, even though your stomach may be reluctant to follow through, the ease of understanding why the signal was generated makes it easier to take action.

Simplicity can make long term investing a family affair. By keeping the investment process simple, everyone will be comfortable with the approach they are following. This simple trend following plan is easily understood and therefore comfortable for everyone in the family to follow.

Teach this plan to your children and and get them interested. Show them how they can follow this simple plan to create future wealth.

Remember Money + Compounding + Time = Wealth.

But the most important element is TIME.

Trend Following. A simple way to become your own investment advisor.