A Road Map to Wealth from the World's Best Money Managers

Peter J. Tanous, who has been in the financial services business for over thirty yea said he was amazed at what he learned interviewing 18 of world's top money managers.

What makes an investment specialist worthy of "guru" status? Based on his candid conversations with the cream of the crop, Tanous identifies 5 defining quailities:

• Discipline: Don't vacillate. Pick a style and stick with it.
• Focus: Keep your eye on the ball.
• Intelligence: Be smart to succeed in the business.
• Hard Work: You get out of it what you put in.
• Intuition: Trust your sixth sense.

Even more than Dollar cost averaging, diversifying your portfolio, and investing the long term; you must realize, "There is no free lunch." Passively invest by choosing low cost index funds, or actively invest with stocks or mutual funds.

Questions to ask your broker about any recommended company:

• Revenues: what are the company's sales?
• Growth rate of revenues: How fast have sales been growing?
• P/E: What is the price-earnings ration of the company?
• Market cap: Is it small or large for my portfolio?
• Gross margins: What are the profit margins; how compare?
• Debt ration: How much debt; compare to peers?
• Management: Senior management? How long? Visited?
• Competition: Barriers to entry? Competitors? Spoken with?
• Timeliness: Price when recommended?

In real estate, they speak of location, location, location. The investment equivalent persistence, persistence, persistence. Look for a track record. The longer the better.

Just as you wouldn't want to fly with a part time pilot, or have heart surgery done by a part time doctor; choose a full time mutual fund manager or money manager who shares your investment strategy, and check on your progress semi-annually to see if you need to rebalance your investments.