Prince Alwaleed: Patience Is Key

Bill Gross is the co-founder of PIMCO. He managed the PIMCO Total Return Fund, one of the largest bond funds in the world, and was the firm's chief investment officer before leaving in 2014.4



Gross' rule focuses on portfolio management.

"Do you really like a particular stock? Put 10% or so of your portfolio on it. Make the idea count. Good [investment] ideas should not be diversified away into meaningless oblivion." —Bill Gross5

A universal rule that most young investors know is diversification, i.e. don't put all of your investing capital into one name. Diversification is a good rule of thumb, but it can also diminish your profits when one of your picks makes a big move while other names don't.

Making money in the market is also about taking chances based on exhaustive research. Always keep some cash in your account for those opportunities that need a little more capital and don't be afraid to act when you believe that your research is pointing to a real winner.