Andrew Heathcote Rich Lists editor

Andrew is BRW's Rich lists editor and is responsible for the Rich 200 and Young Rich flagship issues. He also reports on matters relating to wealth and investment for BRW and The Australian Financial Review.

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How the Rich Invest: Jason Di Lulio

Published 06 December 2012 05:13, Updated 10 December 2012 01:54

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Property and finance investor Jason Di Lulio built a personal fortune by following 10 investment principles. Here they are:

1. Consider all options. It is important to understand alternative investment strategies. Opportunity costs are important.

2. Always be a sceptic. Di Lulio agrees with the adage that if it looks too good to be true, it probably is. Question the information others give you.

3. There are always ups and downs. Mistakes will happen. Occasional losses don’t mean the strategy is wrong. They can also provide an important part of your education.

4. History always has something to say. Historical trends can be your best friend when investing, Di Lulio says.

5. Know what you are investing in. Sounds obvious, but the temptation to grab attractive opportunities before they are thoroughly investigated can be strong.

6. Always develop an investment plan. The secret of a good investment plan, according to Di Lulio, is to ensure it is well thought out and based on realistic outcomes.

7. Balance out the portfolio. Diversity is integral to risk management. It may make an investment portfolio more complex to manage, but it is likely to provide a net benefit in the long term.

8. Investing is a marathon, not a sprint. Making money quickly is fraught with danger. It is important to be decisive when investing, but never rush.

9. It’s not all about returns. Being able to redeem an investment is important. Consider how easy it will be to get your money back before locking it away.

10. Educate yourself. It is sensible to get expert advice, but don’t delegate the requirement to educate yourself about your investment choices, Di Lulio says.