Stock market winners have the following habits:
- They invest on their own. They do not hire advisers.
- They invest in US market index exchange-traded funds. They do not pick stocks.
- They buy and hold. They make no attempt time markets.
- They have a carefully selected asset allocation which they re-balance anytime that market movements change the stock market/cash or near-cash percentage relationship.
- They make no difficult-to-understand investments.
They became stock market investors by beginning to save early in life. They treated and continue to treat savings as a regular expense – a bill payment, until they no longer need to save.
Let us review these points individually.
- By investing on their own, stock market winners save adviser fees. These easily add up to a full year’s income over the course of an investing career.
Greatly admired among investment professionals, David Swensen dealt with points 2, 3, and 4 frequently.
Concerning point 5, well, no one has ever shown that investing in structured notes, principal-protected notes, master limited partnerships, collateralized mortgage obligations, equity-indexed annuities, non-traded REITs, SPAC’s and other hard-to-understand “products” can outperform the simple act of buying and holding an exchange-traded fund which mirrors the S&P 500 index.
Coming up with hard-to-understand “products” allows Wall Street to make big money from innocent investors. Monday Morning Program members are not among them.
With the habits of the Monday Morning program, luck hardly matters.
We have designed the Monday Morning Millionaire Program to offer abstracted investment education. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.
The program does not provide any investment advice or endorsements.
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