Four timeless principles to help you reach your investment objectives
Successful investment management companies base their business on a core investment philosophy, and Vanguard is no different.
Although we offer many specific strategies through both internally and externally managed funds, an overarching theme runs through the investment guidance we provide to clients—focus on those things within your control.
These principles have been intrinsic to our company since its inception, and they are embedded in its culture. For Vanguard, they represent both the past and the future—enduring principles that guide the investment decisions we help our clients make. [More…]
Develop a suitable asset allocation using broadly diversified funds
A sound investment strategy starts with an asset allocation suitable for the portfolio’s objective.
The allocation should be built upon reasonable expectations for risk and returns, and should use diversified investments to avoid exposure to unnecessary risks.
Both asset allocation and diversification are rooted in the idea of balance. Because all investments involve risk, investors must manage the balance between risk and potential reward through the choice of portfolio holdings. [More…]