investment owner’s contract

The Investment Owner’s Contract below is adapted from The Intelligent Investor by Benjamin Graham. I have been using it since I read the book in 2017 as a nice periodic reminder of my long term goals and keeping the course.

It’s not flashy, but it’s working for me.

Investor Owner’s Contract

I ,_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , hereby state that I am an investor who is seeking to accumulate wealth for many years into the future. I know that there will be many times when I will be tempted to invest in stocks or bonds because they have gone (or “are going”) up in price, and other times when I will be tempted to sell my investments because they have gone (or “are going”) 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 $_ _ _ _.00 per month, every month, through an automatic investment plan or “dollar-cost averaging program,” into the following mutual fund(s) or diversified portfolio(s):

1. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ,
2. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ,
3. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ,

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 (which must be a minimum of 10 years after the date of this contact): _ _ _ _ _ _ _ _ _ _, _ _ _ _ _ _, 20 _ _.

The only exceptions allowed under the terms of this contract are a sudden, pressing need for cash, like a health-care emergency or the loss of my job, or a planned expenditure like a housing down payment or a 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: _ _ _ _ _ _ _ _ _ _ _ _