I’ve written a few articles on investing in stocks. Also, I’ve written about my investment strategy. Today, I want to look at how you can survive the mental troubles when your investments crash.
Warren Buffet, one of the most successful investors in the world, wrote in his 2016 letter to his company’s shareholders a recommendation to both large and small investors to invest in low-cost index funds. It’s funny that Buffet, who can be considered an active fund manager, recommends using passively managed index funds. By why?
I’m a big fan of index investing in general, and the VWRL fund in particular. Currently, I’m not looking to maximize my dividend income. Rather, I focus on getting an optimized total return. And that is exactly what VWRL offers: it tracks the world economy by investing in about 3,500 different companies around the globe.