Chapter 6. The Foundations Of The Three Idle Investor Strategies
The elements that are common to all three investment strategies
The key steps that are common to the three investment strategies outlined in this book are:
- Applying a consistent long-term investment strategy, exposed to a large degree to the best-performing asset class of shares, in order to take advantage of the compound interest effect discussed in Chapter 2;
- Buying funds in order to benefit from diversification;
- Periodic rebalancing of investment portfolios to manage financial risk, and to avoid being exposed to unnecessary risk over time.
- Using ETFs to keep trading and management fees to a minimum.
In the following pages, I will take you on a whistle-stop tour of these four ...