Intro to Investing Styles

Investing comes in many different forms and varieties. We introduce common ones.

6/23/20231 min read

Investing is a vast and diverse field, encompassing various styles that cater to different goals and risk tolerances. One popular style is value investing, where investors seek out undervalued stocks or assets in the hopes of profiting from their future growth. There is also growth investing, which focuses on investing in companies with high growth potential, even if their current valuations might seem high. Income investing, as the name suggests, revolves around generating a steady stream of income through investments in dividend-paying stocks or bonds. For those who are willing to take on higher risks, speculative investing involves high-risk, high-reward opportunities like investing in startups or volatile industries. It's essential for investors to understand these various styles and their associated risks in order to make informed investment decisions.

Boglehead investing, named after its founder John C. Bogle, is a popular investment strategy that emphasizes low-cost index funds and passive investing. The philosophy behind Boglehead investing is rooted in the belief that long-term, low-cost investing in a diversified portfolio can lead to consistent returns. The history of Boglehead investing dates back to the 1970s when John Bogle founded Vanguard Group and introduced the first index mutual fund for individual investors. Bogle's innovative approach challenged the traditional active management style prevalent at the time. Today, Boglehead investing has gained a wide following, with investors embracing the principle of simplicity, diversification, and long-term patience. By focusing on low-cost, broadly diversified index funds, Boglehead investors aim to minimize fees and increase their chances of achieving market returns over time.

The next series of blog post further introduce and discuss Boglehead investing.