Index funds are the smart way to build a successful portfolio. This approach is founded in the second Coffeehouse Investor priniciple, “There is no such thing as a free lunch.”
It’s not that you can’t beat the market over time, but your chances of accomplishing this by choosing your own stocks, or letting a professional stockpicker choose them, is slim.
A simple approach to investing in the entire stock market is to purchase one “total stock market” index fund. But can you do better?
In this video, Bill Schultheis suggests that one way to accentuate a total stock market fund, is by adding Value, Small, and International dimensions of the stock market to your portfolio.
What matters is not which approach you select, but whether you have the tenacity to stick with what you choose when things aren’t going your way.
For more information, visit www.coffeehouseinvestor.com