Index funds, mainly S&P500 (or SXR8 to be exact). My investment horizon is ~25 years away. I also have some investments in other index funds that follow areas I am interested in or understand.
I own a handful of companies stock directly - only ones I actually understand and ones that are always needed. Banks, infrastructure companies, grocery chains and the like. People will always need a place to store their money and get water, food and electricity.
"Time on the market beats timing the market"
It's statistically better to buy a small amount of stocks 12 times a year than one HUGE bundle once a year. That way the value fluctuations will even out in time.
That pithy Vanguard piece is for lump sums and states “Our research indicates that it's prudent to invest a lump sum immediately” without any backing evidence.
And the article contradicts itself: it basically says do whatever makes you feel best. Arrrgh.
"Choose between dollar cost averaging and lump-sum investing by evaluating your risk tolerance, your investment horizon and your ability to stick with an investing plan. Lump-sum investing outperforms dollar cost averaging 75% of the time for stocks and 90% of the time for bonds, but dollar cost averaging may be a good choice for investors worried about taking on immediate risk."
" New research looked at rolling 10-year returns on $1 million starting in 1950, and compared results between an immediate lump-sum investment and dollar-cost averaging.
Assuming a 100% stock portfolio, the return on lump-sum investing outperformed 75% of the time.
For portfolios with 100% bonds, that rate of outperformance was 90%."
I own a handful of companies stock directly - only ones I actually understand and ones that are always needed. Banks, infrastructure companies, grocery chains and the like. People will always need a place to store their money and get water, food and electricity.
"Time on the market beats timing the market"
It's statistically better to buy a small amount of stocks 12 times a year than one HUGE bundle once a year. That way the value fluctuations will even out in time.