Investors have the tendency to invest in markets as they perform well, and disinvest as they perform poorly. This pattern extends to the stock, bond, and money markets.
Investors have the tendency to invest in markets as they perform well, and disinvest as they perform poorly. This pattern extends to the stock, bond, and money markets.
Once an investor develops a reasonable plan for long-term investment, a vital component to its success is for the investor stay the course and stick to the plan. This is perhaps the most challenging part of long-term investing.
Investors are exposed to a never-ending stream of newsprint articles, media talking heads, and internet chat filled with prognostications and auguries that now is the time to buy or sell a specific stock; or now is time to jump in…
As we begin our lifelong investing “career” we must recognize the risks inherent in investing. A primary risk for investors accumulating the funds for their retirement years is that they fail to accumulate a nest egg that can outpace the…
A key investment principle is the need to diversify one’s investments. This principle harkens back to the proverbial “don’t put all your eggs in one basket.” As an example, consider an individual employed by Microsoft who holds an investment portfolio…
John Bogle, in his speech, “Investing With Simplicity,” states:“Simplicity is the master-key to financial success. When there are multiple solutions to a problem, choose the simplest one.” Simplicity can take on a number of forms in the art of investing.…
Keeping investment costs low is a vital investment principle. Investment expenses come directly from your investment return, and over the long-term eat into your wealth accumulation. Expenses are one aspect of investing that you can control, so understanding the various costs…
Once you have adopted a sound financial lifestyle you can begin the process of accumulating financial wealth. As you begin to invest your savings a second principle comes into play: invest early and often, for two important reasons: In order…
Perhaps the most important idea underlying any sound approach to investing is recognizing that you need to save a significant portion of income every month to have enough money for funding financial goals. Common goals include home purchases, higher education…
In 1986 John Bogle and Vanguard introduced a bond market index fund. In what was to become a brilliant marketing strategy, Bogle labeled the fund as the Vanguard Total Bond Market Index Fund. Bogle returned to the “total” market branding strategy, …