I’ve been waiting an entire year to review my sample index fund holdings. I started learning about investing in the stock market around the same time I started my student loan repayment. After consultation with those wiser than I, I decided to not simultaneously invest and pay off debt. Rather I chose to focus completely on paying off my student loans. But, I also wanted to put into practice all I had learned about index funds and the stock market. So I bought a small, sample portfolio and wanted to see where it was a year later. Here are the results.
Occam’s Razor states: “when confronted with multiple problems to a solution, choose the simplest one.”
I like to believe that if William of Occam were an investor, he would be a passive investor rather than an active investor. Let me explain.
I have something I need to confess: having spent so much time in academia pumping out paper after paper for 6 years, I am really, REALLY good at writing pages upon pages of information. It isn’t such a good talent to have sometimes, especially on a blog. I’m pretty sure most people don’t want to read reams of information; I think most people want the information passed to them as quickly and concisely as possible.
Lazy. Little Skill Required. Set and Forget.
Index funds are basically the lazy way to invest in the market. They buy the whole market. Here is what I mean…