Nature vs Nurture: Why I invest the way I do vs how I want you to invest.


Some of you reading may notice...

 that on my Principles of Investing  page you will notice that I invest in a way that is very different from how I tell my readers to invest. 

A lot of my peers in the personal finance niche do not consider themselves investors. They consider investing as a means to live the life they want to live, and there's nothing wrong with that. I on the other hand do consider myself to be a investor. To be specific a value investor.  Looking at the numbers, and using deductive reasoning to find the best price to invest in a business. Most importantly I have the ability to stay the course. The random mood swings of the market do not phase me as it does with many many others.

Ill be the first to tell you that I do not have the 'smartest man in the room' thought process, my investing ability comes from me knowing my limits and following a set of rules that protects me from myself. 

Alot of you despite what you all will say will not be able to stomach seeing your prized stock pick drop $15 dollars over the next six months. 

The beautiful thing is you don't have to feel that pain. You do not have to invest like me in order to live the New American Dream lifestyle.

Jack Boggle invented a way for the layman to invest without the stresses of trying to comb through 19,000 different businesses trying to find the perfect business.  

He created the Vanguard group in 1974 and with its creation he pioneered the birth of index investing. The surest path to building wealth while you sleep. 

The simplest way to wealth creation is to invest in the Vanguard Total Stock fund.  

In short...

I am a total return value investor, that uses dividend payments as a true measure of free cash flow (owners earnings). I invest this way because I can handle the up and down swings of the market and while I enjoy a slight advantage over the average you all should invest  in the vanguard total return stock market etf fund.




 Do as I say, not as I do 

Or at least try to 



No comments:

Powered by Blogger.