There are many factors that go into creating long term success for investors. Despite what the talking heads on CNBC or your broker or advisor may say, trading in and out of today’s hottest investments is not one.

Investors have struggled in finding out what it takes to succeed for long periods on Wall Street.

Just in the last decade and a half investors have been made to believe they are investing geniuses in 1999, only to be burned by 90% losses in the tech bubble of 2000. Thought they were real estate market wizards only to been stuck holding 5 houses in the real estate bust of 2008. Or, been scared to believe that the only viable investment is a shiny yellow metal, only to see a decline of $600 an ounce in gold since 2011 (this is just to name a few).

So when the founder and CEO of one of the most successful fund management companies of the last 30 years opens up about his firm’s investment philosophy, it’s probably in our best interest to listen.

His best advice is only one sentence long, simple to implement and takes less effort than pouring a cup of coffee:  [continue reading…]

This week, we are looking at the effects of volatility on your portfolio. But not in the effect of just how much the value of your portfolio changes – but in how you ACT due to that volatility and how much it hurts your long term performance.

Last week, I was reading the annual report for a fund that I own, Vanguard Dividend Appreciation Index Fund (Ticker: VIG), and at the end of the Chairman’s (William McNabb III) letter found this quote:  [continue reading…]