Investing in 100 Words

By Kaye A. Thomas
Current as of July 4, 2016

Investing is a huge topic, but everything you really need to know can be said in 100 words.

Good investing is simple but not easy. It requires patience and discipline.

Adequate saving is the foundation. Impossible, you say? There are people who save more than you despite earning less.

Reasonable growth comes only from investments that can lose value, sometimes producing painful losses. Sticking with a good investment plan through a period of losses is the hardest part of investing, and also one of the most important.

Diversification can reduce risk without reducing growth.

For faster growth without added risk, reduce your investment expenses. On average, index funds offer lower expenses and better performance than comparable managed funds.


Related

That Thing Rich People Do, our book on the basics of investing