I have just returned from a trip to Scottsdale Arizona where I attended a Value/Dividend investors summit. Real estate and value investing in the stock market have been a passion of mine for several decades now so I always try to attend a few of these events each year. One of the highlights for me was a session on the teachings and investment philosophies of one of the world's legendary investors John "Jack" Bogle. Back in 1975 Jack created a radical investment tool called an index fund. This is an intentionally boring fund that mirrors the performance of a broad-market index. He went on to found the mutual fund company Vanguard which manages over 2.1 trillion in assets but the company makes no profit. It is client owned by the investors. I've talked before on my blog that becoming financially successful is fairly easy if you just follow some of the masters like Jack. Here are a few of Jack's keys to investing success. By the way it doesn't matter if you're buying dividend paying blue chip stocks, Real Estate or ETF's; just follow these rules and you will win every time, guaranteed!
You're not smarter than the market so don't try and time markets. You might get lucky once but over the long run you have no chance. Buy and hold the entire market and don't get in and out of the market. Buy right and Hold Tight!
Seek Boredom. Be bored by the process but elated at the outcome. Investing should never give you a rush.
Invest don't trade. Paying attention to minute by minute, hanging on every word and statistic or reading all the negative propaganda that everything is going to collapse is for speculators. That's not investing.
If you buy a house or a stock at age 25 and not look at the value of your investment again until your 70 I recommend you have a doctor on hand because you'll go into a dead faint. You're going to have an amount of money you can't even imagine. (Bonus if it's your principal residence.... it's all Tax free!)
Don't panic, Be Cool. There will be bumps, Real estate and stock markets don't go up forever. I can guarantee that there will be at least 2 or 3 20% or 30% corrections over the next 10 years. Just assume them. When they happen, just say, "I knew that." The real savvy investors keep cash on hand to buy during these dips.
If you want to hear more from Jack just plug his name into youtube.com and learn more from one of the best.
This entry was posted on May 15th, 2013 by Owen Bigland | Posted in Video Blog