Keep it Simple

This is so true about everything in life and it's especially true about investing. As a beginner, you are probably overwhelmed by the amount of information you need to learn to become a savvy investor. This is a good time to point out an important fact. Your confusion is a result of your lack of knowledge and from the overwhelming amount of new information being thrown at you, NOT because investing is complex and sophisticated.

Don't stray from the keep it simple philosophy as you become a more seasoned investor. Einstein said that "everything should be made as simple as possible, but no simpler" and that's great advice. You have to understand the basics of your strategy, but don't needlessly add complexity because you feel being a more sophisticated investor will make you more successful.

In the Index Fund and ETF Investing Guide and it is a great example of the Keep it Simple philosophy. Index investors choose funds that own the stocks of whatever index they'd like to track That's it, that's the whole strategy. You were expecting more? Don't let that fool you into thinking it is weaker than more complex strategies, Index Investors beat over 75% of all professional fund managers and analysts. Half of our Fund Street Monthly newsletter is dedicated to Index and ETF investing because it is one of the best strategies even though it is also one of the simplest. Bottom line, if you adhere to the 10 Basic Principles of Investing, always continue to learn, implement your strategy well, and stay abreast of changes in the market and the economy you will be a successful investor.