Video:Bogleheads® investment philosophy

main article: Bogleheads Investment Philosophy

The Bogleheads follow a small number of simple investment principles that have been shown over time to produce the best results. These ideas come from the investing philosophy of Vanguard-founder Jack Bogle. Some of these ideas are distilled from Nobel prize-winning financial economics research on topics like Modern Portfolio Theory and the Capital Asset Pricing Model. But they are really very easy to understand and to implement, and they work. In fact, the basis of all of these principles is the idea that successful investing is not a complicated process, and can be accomplished by anyone with a small amount of effort.

This wiki introduces these principles with short entertaining video segments to give investors the big picture and an orientation to the more detailed discussions on this wiki site and in the recommended books.

Introduction
This is an introduction and index to ten short explanatory videos about how to take control of your finances to achieve financial independence and enable your life dreams.


 * Transcript, footnotes, and movie credits.

   


 * Updated: October 31, 2009. View the video in high definition on YouTube or Vimeo.

Develop a workable Plan (Rule#1)
Your investment planning begins with some ballpark estimates of what kind of money you might need to accomplish your dreams. For many this seems formidable, so this video includes some popular guidelines that have helped many succeed in saving for these goals.


 * Transcript, footnotes, and movie credits.

   


 * Updated October 31, 2009. View the video in high definition on YouTube or Vimeo.

Invest early and often (Rule#2)
This short video illustrates the miracle of compound interest and the importance of starting to save early with a simple example of two young college graduates.


 * Transcript, footnotes, and movie credits.

   


 * Updated November 2, 2009. View the video in high definition on YouTube or Vimeo.

Never bear too much or too little risk (Rule#3)
The ratio of stocks and bonds you own is your key lever that controls the overall risk (variability) of your investments.


 * Transcript, footnotes, and movie credits.

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 * Updated November 1, 2009. View the video in high definition on YouTube or Vimeo.

Diversify! (Rule#4)
It's not enough to own stocks of hundreds of companies (although easy with a mutual fund). Learn about the "magic" benefits of poorly correlated investments--most notably, owning both stocks and bonds.


 * Transcript, footnotes, and movie credits.

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 * Updated on November 1, 2009. View the video in high definition on YouTube or Vimeo.

Never try to time the market (Rule#5)
The vast majority of investors earn less than the market due to two common timing mistakes: buying yesterday's top performers, and letting your emotions cause you to attempt to predict the direction of the stock market.


 * Transcript, footnotes, and movie credits.

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Use index funds when possible (Rule#6)
Learn how to tell a good mutual fund from a bad one. What is an index fund? And why do they outperform in the long run?


 * Transcript, footnotes, and movie credits.

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 * Updated March 24, 2011.