In the world of investing, there are countless strategies and approaches that investors can take to try and maximize their returns. From day trading to long term buy and hold strategies, the options can seem overwhelming. However, for the investment purist, there is one key principle that reigns supreme: diligence.
Diligence in investing means taking the time to thoroughly research and understand the investments you are making. It means carefully analyzing the risks and potential rewards of each opportunity, and making informed decisions based on that analysis. Diligence also means being patient and disciplined, sticking to your investment plan even when the market is volatile or emotions are running high.
One of the key ways that the investment purist practices diligence is by simplifying their investment strategy. This means cutting out unnecessary complexity and focusing on the core principles that drive investment success. One common way that purists simplify their strategy is by reducing fees.
Fees can eat into your investment returns over time, so it's important to be mindful of them when building your investment portfolio. This means choosing low cost investment options like index funds or ETFs, which typically have lower fees than actively managed mutual funds. It also means being wary of high cost investment products like annuities or complex structured products, which can come with hidden fees that erode your returns.
By reducing fees in your investment portfolio, you can potentially increase your overall returns and compound your wealth over time. This is a simple yet powerful way to practice diligence in your investing, and it's a strategy that the investment purist swears by.
In conclusion, if you consider yourself an investment purist, remember the importance of diligence in simplifying your investment strategy. By reducing fees and focusing on the core principles of investing, you can set yourself up for long term success in the markets. Stay patient, stay disciplined, and stay focused on your goals. Your future self will thank you.