The Oxford Club is Teaching Investors to Build Wealth

The Oxford Club is an independent network of international investors. Its headquarters are in Baltimore, Maryland, but its 157,000 members live in 130 countries around the world. Through newsletters, emails, trading alerts, books and symposiums, the Club keeps its membership up to date on what they need to know to grow, guard and maintain their wealth.

In a recent article the Club published, they explain the four foundations of their investing philosophy. The second principle is to have an exit strategy.

Without that, you’re at the mercy of your emotions. When the market dips down and the media is screaming the sky is falling, you panic and sell. When the market jumps up and the pundits are all talking about Dow 50,000, you grow greedy and buy.

Sadly, that behavior is typical for ordinary investors who don’t have a plan. It’s well-known they have poor results even in great bull markets because they buy when the market is high and sell when the market is low. That’s why you must make a plan at a time you are feeling calm and rational — and then stick to it even when fear or greed are raging inside you.

Unfortunately, some of your investments will not only go down after you buy them, they will keep going down. Therefore, you must have a plan in place before you buy. And what will you look for. A small price dip after you buy is not unusual and will not prevent the company from being a ten-bagger in a few years. But if the price is still headed down six months later or the CEO does a perp walk on the news, it’s probably time to cut your losses.

The Oxford Club has been helping investors since its formation as The Passport Club in 1989. They changed the name in 1991.

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