In this insight Vanguard sets out 4 enduring principles that guide the investment decisions towards success:
#1 Goals: Create clear, appropriate investment goals.
#2 Balance: Develop a suitable asset allocation using broadly diversified funds.
#3 Cost: Minimize cost.
#4 Discipline: Maintain perspective and long-term discipline.
We should focus on those things within your control. Instead, too many focuses on the markets, the economy, manager ratings, or the performance of an individual security or strategy, overlooking the fundamental principles that we believe can give them the best chance of success.
The Vanguard Group is an American registered investment advisor with over $5.3 trillion in assets under management. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock’s iShares.
Founder and former chairman John C. Bogle is credited with the creation of the first index fund available to individual investors, and was a proponent and major enabler of low-cost investing by individuals.
Vanguard is owned by the funds managed by the company, and is therefore owned by its customers.