When it comes to investing, many people believe that more is better. More stocks, more funds, more trades – all in an effort to maximize returns. However, there is a growing movement in the investing world that advocates for a leaner approach: the Lean Investing Method.
The Lean Investing Method is all about emphasizing value over volume. Instead of constantly chasing the latest hot stock or fund, lean investors focus on finding solid, undervalued investments that have the potential for long term growth. By trimming down the number of investments in their portfolio, lean investors are able to reduce fees and increase the likelihood of higher returns.
One of the key principles of the Lean Investing Method is to minimize expenses. This means avoiding high cost mutual funds and actively managed accounts in favor of low cost index funds and ETFs. By doing so, investors can significantly reduce the fees they pay, which can eat away at their returns over time.
Another important aspect of the Lean Investing Method is to stay disciplined and avoid emotional decision making. This means sticking to a long term investment strategy and not getting caught up in the ups and downs of the market. By maintaining a steady course, lean investors are able to avoid unnecessary trading fees and potentially harmful decisions driven by fear or greed.
In addition to minimizing fees and staying disciplined, lean investors also prioritize diversification. By spreading their investments across different asset classes and sectors, they can reduce risk and increase the likelihood of positive returns. This approach helps to protect their portfolio from the impact of any one investment performing poorly.
Overall, the Lean Investing Method is a simple yet effective way to trim down fees and fatten up returns. By emphasizing value over volume, staying disciplined, and diversifying their investments, lean investors can set themselves up for long term success in the market. So, next time you're thinking about making an investment, consider taking a lean approach – your wallet will thank you.