Friday, March 18, 2016

Long Term Investing Advice

The best investment advice I was ever given was to start investing as young as possible with something that will grow over time.  Even setting aside $50-100 per month can have huge growth over 15, 20, or 30 years.  Time is the most important thing to think about for lifetime investments.

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Bogle, Buffett agree: Don't watch stocks - MarketWatch
"Don't watch the market closely," Buffett told CNBC in an interview. "The money is made in investments by investing and by owning good companies for long periods of time. If they buy good companies, buy them over time, they're going to do fine 10, 20, 30 years from now."

Which mirrors what John Bogle says about what to do when markets decline. Don't open statements, don't obsess, don't even look.

It's buying high and selling low, the opposite of what you are supposed to do. It's panicking in and out of stocks rather than buying them and just holding on, dollar-cost-averaging during declines and periodically rebalancing.

It's the watching, and then reacting, that is the problem, the sin against your portfolio that Bogle and Buffett warn us against.

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