Build a wellbalanced portfolio tailored to your risk tolerance and time horizon from "summary" of John Bogle on Investing by John C. Bogle
The key to successful investing is to create a portfolio that aligns with your personal risk tolerance and time horizon. It's important to consider these two factors carefully when constructing your investment strategy. Risk tolerance refers to your ability to withstand fluctuations in the market without panicking and making impulsive decisions. Some investors are comfortable with taking on more risk in exchange for the potential for higher returns, while others prefer a more conservative approach to avoid significant losses. Understanding your risk tolerance is crucial in determining the right mix of investments for your portfolio. Additionally, your time horizon plays a significant role in shaping your investment strategy. Your time horizon is the length of time you expect to hold your investments before needing to access the funds. Generally, the longer your time horizon, the more risk you can afford to take on in your portfolio. Yo...
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