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Investing is simple from "summary" of The Little Book of Common Sense Investing by John C. Bogle
Investing is simple. Yes, simple. It's not easy, that's for sure. But it's simple. The reason it's simple is that the winning strategy for investing over the long term is so straightforward. All you have to do is buy a diversified portfolio of low-cost index funds and hold them until you retire. That's it. No need to try to time the market, pick individual stocks, or pay high fees to active money managers. The beauty of this strategy lies in its simplicity. By investing in a broad range of companies through index funds, you are essentially investing in the entire market. This means that you are not relying on the success of any one particular company or industry. Instead, you are betting on the long-term success of the overall market, which has historically shown steady growth over time. Furthermore, by choosing low-cost index funds, you are ensuring that you keep more of your hard-earned money working for you, rather than paying it out in fees to Wall Street. These low-cost funds track the performance of a specific market index, such as the S&P 500, and have much lower expense ratios than actively managed funds. This means that more of your investment returns stay in your pocket, compounding over time to build wealth. So, while investing may not be easy due to the emotions and temptations that come with market fluctuations, the strategy itself is simple and straightforward. By sticking to a diversified portfolio of low-cost index funds and staying the course, you can achieve long-term financial success without the stress and uncertainty that often come with trying to outsmart the market. Invest wisely, be patient, and let the power of compounding work its magic for you.
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