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THE SOUTH AFRICAN INDEX INVESTOR |
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“Greater rewards, lower costs” |
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TOOL BOX |
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The Investment Owner’s Contract
(From “The Intelligent Investor” by Benjamin Graham and updated by Jason Zweig, 2005)
I, ______________________________________________________, hereby state that I am an investor who is seeking to accumulate wealth for many years in the future.
I know that there will be many times when I will be tempted to invest in assets because they have gone up in price, and other times when I will be tempted to sell my investments because they have gone down.
I hereby declare my refusal to let a herd of strangers make my financial decisions for me. I further make a solemn commitment never to invest because the stock market has gone up, and never to sell because it has gone down. Instead, I will invest R___________ per month, every month, through an automatic investment plan into the following investment funds:
________________________ ________________________ ________________________
I will also invest additional amounts whenever I can afford to spare the cash (and can afford to lose it in the short run).
I hereby declare that I will hold each of these investments continually through at least the following date (preferably 10 years): ____________________________. The only exceptions allowed under the terms of this contract are a sudden, pressing need for cash, like a health-care emergency, or loss of income, or a planned expenditure like a housing down payment or tuition bill.
I am, by signing below, stating my intention not only to abide by the terms of this contract, but to re-read this document whenever I am tempted to sell any of my investments.
This contract is valid only when signed by at least one witness, and must be kept in a safe place that is easily accessible for future reference.
Signed: ________________________________ Date: ________________________
Witnesses: _____________________________ _____________________________
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