John ‘Jack’ Bogle was the founder of Vanguard in 1975, built on the belief that, over the long-term, investment managers don’t outperform the wider stock market averages. Ordinary people then had the chance to invest their money in the environment that was previously only available to institutional investors.
Summarising his tips for successful investing…
Investing Is A Must
The biggest danger to personal wealth accumulation is not stock market volatility, rather, it is not investing in it in the first place. Avoid simply ‘saving’, and put your money to work. Interest from simple cash savings will lose out to inflation; invest, sit back, and let it do its thing.
Time Is Your Friend
Investing is a virtuous habit. Start as early as you can and you’ll quickly appreciate the powers of compounding returns. Even a modest or conservative investment made in your 20s can grow to vast amounts over the course of your lifetime…in the background…unnoticed…allowing you to get on with your day-to-day life without financial worry.
Impulse Is Your Enemy
Emotion is not something that should be allowed within your investment decision-making process. As we remind all our clients, it is imperative to avoid the mind-boggling amounts of noise and media attention that is spewed out across the internet and social media. None of these are market insights and millions of others are seeing that information too.
Keep Costs Down
“Intelligent investors will use low-cost index funds to build a diversified portfolio of stocks and bonds, and they will stay the course”
Although you cannot accurately predict your investment performance, you do have control over the costs. Keep your investment expenses low, for the tyranny of compounding costs can devastate the miracle of compounding returns.
Stay The Course
Changing your strategy at the wrong time through taking notice of market noise can be the single most devastating mistake any investor can make. Take the investors who moved a large percentage of their portfolio to cash in the 2008 financial crisis, only to miss out on some or all of the subsequent 10 year bull market…
These tips are something that we espouse within our business to allow our clients to generate wealth accumulation aligned with their personal life goals and direction.
If you are now thinking that you are sat on top of a sum of money but you’re not getting the best out of it, contact us and we will see how we can help you achieve financial independence and freedom.