Where to direct a new investor?

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alex123711
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Joined: Sun May 20, 2018 5:01 am

Where to direct a new investor?

Post by alex123711 »

Looking to point family/ friends in the direction of index investing, what would be the best place to direct them so they can see the virtues of index investing?
DarkHelmetII
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Re: Where to direct a new investor?

Post by DarkHelmetII »

1) wiki pages within BH are a good conceptual start
2) read random walk down wall street
3) use Vanguard
4) buy vfiax and VBTLX per selected asset allocation
zeal
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Re: Where to direct a new investor?

Post by zeal »

Video:Bogleheads® investment philosophy - short videos explaining the "tenets" of Bogleheads.

What picture can paint a thousand Bogle words? - I bookmarked this thread a while ago, as there are a lot of great images that clearly demonstrate the benefits of investing like a Boglehead.

If You Can: How Millennials Can Get Rich Slowly (PDF) - a short essay by William Bernstein. This was a very clear, concise, and informative read for me early on that I still reread regularly. Bernstein also points out several great books to read in here if your new investor is someone who likes to read.
dbr
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Re: Where to direct a new investor?

Post by dbr »

I would be careful not to label "Boglehead" investing as "index" investing as the distinction between actively managed mutual funds and ETFs and index mutual funds and ETFs is not the essence of the approach. Note that many very good Vanguard funds are not index funds, including pretty much all of their Treasury bond funds, the likes of Wellesley and Wellington, etc. Fitting the BH Philosophy is the essence.

As others suggested, the Wiki is good, starting at "Getting Started," but there is also a reading list which should be pursued: https://www.bogleheads.org/wiki/Books:_ ... nd_reviews
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Sandtrap
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Re: Where to direct a new investor?

Post by Sandtrap »

alex123711 wrote: Wed Aug 12, 2020 2:24 am Looking to point family/ friends in the direction of index investing, what would be the best place to direct them so they can see the virtues of index investing?
How to make a helpful long term "investment finance strategy for retirement" (universal appeal vs "index investing") suggestion to others:

Email:

Greetings.
Thought you might find this interesting and useful.
Have a great day.
Marlo Thomas

Link to Bogleheads.org Wiki page (introduction/getting started)
https://www.bogleheads.org/wiki/Getting_started
Link to Bogleheads.org discussion: Financial/Investment Advisor or Do It Yourself.
viewtopic.php?t=83065
Link to Bogleheads.org Wiki page (suggested reading)
https://www.bogleheads.org/wiki/Books:_ ... t-up_Books
Link to "If You Can" pdf
https://www.amazon.com/If-You-Can-Mille ... adswiki-20
Link to Amazon.com book, "Little Book on Common Sense Investing"
https://www.amazon.com/Little-Book-Comm ... adswiki-20
Link to Amazon.com book, "Make The Most Of Your Money Now"
https://www.amazon.com/Making-Most-Your ... adswiki-20
Link to Amazon.com book, "Smart and Simple Financial Strategies For Busy People".
https://www.amazon.com/Smart-Simple-Fin ... adswiki-20
Link to Amazon.com book, "Simple Path To Wealth".
https://www.amazon.com/Simple-Path-Weal ... 911&sr=8-2


j :D
Wiki Bogleheads Wiki: Everything You Need to Know
Doctor Rhythm
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Re: Where to direct a new investor?

Post by Doctor Rhythm »

For me, the most compelling argument for index investing is the fact that
1. The vast majority of active managers lag behind their index benchmark
2. The longer the time window you examine, the more likely that the active funds will lose out

If your family/friends have numerical literacy, I would have them look at the SPIVA (S&P Index Versus Passive) scorecard.
Fallible
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Re: Where to direct a new investor?

Post by Fallible »

alex123711 wrote: Wed Aug 12, 2020 2:24 am Looking to point family/ friends in the direction of index investing, what would be the best place to direct them so they can see the virtues of index investing?
Your request is ambitious. It's hard to know the right direction to send one investor let alone a group, even if indexing does narrow it somewhat. And that assumes everyone is willing to take direction (we often see on the forum that they are not). How motivated are your family members and friends to invest? Are they in active investing? Ages? Completely new to it? Whatever, if you are to succeed, the ideas posted here are great. I favor the wiki pages, especially "Getting started" and the large book list with something for everyone.
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
slopetider
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Re: Where to direct a new investor?

Post by slopetider »

The Simple Path To Wealth is as great a place as any to start. Very straightforward and easy to digest. It was my "gateway drug" into this community. :sharebeer
HawkeyePierce
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Re: Where to direct a new investor?

Post by HawkeyePierce »

If You Can by William Bernstein, a Boglehead himself. It's short and sweet.

http://tuttle.merc.iastate.edu/Bernstein_If_You_Can.pdf
Grt2bOutdoors
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Re: Where to direct a new investor?

Post by Grt2bOutdoors »

slopetider wrote: Thu Aug 13, 2020 9:44 am The Simple Path To Wealth is as great a place as any to start. Very straightforward and easy to digest. It was my "gateway drug" into this community. :sharebeer
+1 That coupled with them watching a video of the author explaining why index investing is the way to go: https://youtu.be/T71ibcZAX3I
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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ruralavalon
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Re: Where to direct a new investor?

Post by ruralavalon »

HawkeyePierce wrote: Thu Aug 13, 2020 10:15 am If You Can by William Bernstein, a Boglehead himself. It's short and sweet.

http://tuttle.merc.iastate.edu/Bernstein_If_You_Can.pdf
+ 1.

This is an excellent way to begin, simple, easy to read, covers the basics, and free.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
retired@50
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Re: Where to direct a new investor?

Post by retired@50 »

dbr wrote: Wed Aug 12, 2020 9:01 am As others suggested, the Wiki is good, starting at "Getting Started," but there is also a reading list which should be pursued: https://www.bogleheads.org/wiki/Books:_ ... nd_reviews
I'd also recommend a library card (likely to be free) to go along with the book recommendations link above.

Regards,
This is one person's opinion. Nothing more.
joetro29
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Re: Where to direct a new investor?

Post by joetro29 »

Christine Benz at Morningstar is great.
backpacker61
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Re: Where to direct a new investor?

Post by backpacker61 »

retired@50 wrote: Thu Aug 13, 2020 1:24 pm
dbr wrote: Wed Aug 12, 2020 9:01 am As others suggested, the Wiki is good, starting at "Getting Started," but there is also a reading list which should be pursued: https://www.bogleheads.org/wiki/Books:_ ... nd_reviews
I'd also recommend a library card (likely to be free) to go along with the book recommendations link above.

Regards,
Yes, and some libraries have a Morningstar subscription, that you can access online from your library account.
“Now shall I walk or shall I ride? | 'Ride,' Pleasure said; | 'Walk,' Joy replied.” | | ― W.H. Davies
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Brianmcg321
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Re: Where to direct a new investor?

Post by Brianmcg321 »

Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
livesoft
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Re: Where to direct a new investor?

Post by livesoft »

Reading is so passé nowadays, so telling folks to go read something is counterproductive. Folks do not even like to read something as short as a paragraph.
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