Aristotle once wrote that there are only seven stories to be told, and all drama is a variation on one of these seven stories. While not as profound, there's a personal finance equivalent to this truism. There are seven stories to write on matters for individual investors, and all personal finance stories are variations on the same seven stories. No matter how we dress up different stories, every personal finance column can be reduced to one of these basic seven tenets. Today's Financial Education column will explain the essence of each of these seven stories.
Portfolio X-Ray . We'll leave this section with the three fundamental long-term truths of diversification: 1. Stocks beat bonds, bonds beat cash. 2. Small stocks beat large stocks. 3. Value beats growth.