John Bogle's key 10 rules of investing are :
- Reversion to the mean. What's hot today isn't likely to be hot tomrrow.
- Time is your friend, impulse is your enemy. Let the miracle of compound investment work for you.
- Buy right and hold tight. Stick to the plan no matter how scared or greedy you become.
- Have realistic expectations. Yoou won't become rich quickly.
- Forget the needle, buy the haystack. Buy broad-based index or exchange-traded funds and you can cut stock risk, style risk, and manager risk.
- Minimize the croupier take. Minimize fees by investing in low-cost funds. This increases your return.
- There's no escaping risk. No wealth without risk.
- Don't fight the last war. What worked in the past not necessarily will work again.
- The hedgehog beats the fox. Foxes represent the financial institutions that charge far too much for their artful, complicated advice. A hedgehog does one thing when threatened — he curls up into a spiny ball. Simple, but effective, like an index fund.
- Stay the course. The secret to successful investing isn’t forecasting or good stock picking. It is about making a plan, sticking to it, and eliminating unnecessary risks.
