Principles followed by good investors: Flexibility and Patience

Flexibility: It is important to remain flexible and open-minded about the different types of investments you might include in your portfolio. There is no one type of security that is always best.  There are good times to buy bonds and good times to buy blue-chip equities, or cyclical companies or other investments.
If a particular type of security is currently very popular with investors then it is usually a bad time to hold it.
And always keep the flexibility of mind to think that there are times to sit on cash.  Holding cash allows you to take advantage of investment opportunities.
If you have an area of investment, say oil shares, that has done well for you in recent years then it may be the time to ask whether this is a good place for you to be in the future. Look around and ask, “What is depressed in price today?  Oil shares may have been bargains two or three years ago, but they may not be now, and it would be foolish to stick with them.
Tip: Look for those securities that performed worst in the recent past and assess whether they are now bargains.
Patience
Buying shares with a long-range view in mind requires patience because it frequently takes the market quite a while to catch up and revalue what you’ve bought.  These shares can continue to be neglected for several years.
Benjamin Graham said that it would often take three or four years for Mr Market to appreciate the companies he bought into.
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