When a corporation goes into the marketplace to buy back its own stock, it means management thinks the stock is undervalued. This is a smart time to buy.

Have the courage of your own convictions and don't be swayed by friends who boast about their financial home runs. Last year's winners are often this year's losers.

Always leave a sinking ship. There's no virtue in hanging on to losers. And stocks don't have feelings.

The higher the yield, the higher the risk. A high yield is designed to attract investors. An outrageously high yield attracts fools.

When a corporation goes into the marketplace to buy back its own stock, it means management thinks the stock is undervalued. This is a smart time to buy.

Avoid greed and fear. These are the investor's Achilles heels. Keeping all your money in the bank earning 3% interest is just as foolish as dumping your entire savings into the market thinking you'll make a quick buck.

Give a cold shoulder to cold callers. Never invest in anything based on a phone call from someone you don't know or whose office is a post office box.