I’ve referred to these in a few past blog posts, but I thought I’d give Vanguard’s four key principles for successful investing their own post, since they have had such a profound impact on my own investing psychology. These principles are intended for building long-term wealth. They are not a get-rich quick scheme (and any such scheme you hear about is a scam).
- Set clear goals. Clear goals help you to stay focussed, particularly when markets are in turmoil.
- Stay balanced. Make sure you’re comfortable with your investment risk, and make sure your portfolio is diversified.
- Keep costs low. Fees eat into your gains.
- Maintain discipline. Markets regularly fall. It is part of what investing is about, and is perfectly normal. In our experience, maintaining discipline, sticking to the plan and rebalancing your portfolio, works.
These principles remind me of Warren Buffet. He is now worth $148.9 billion (as of January 2026). 99% of this wealth was built after his 50th birthday (he is now aged 95), and he is widely regarded as one of the world’s greatest investors. He has maintained his own timeless investing principles of buying good companies that are reasonably priced or under-valued, and holding them for a long period of time, throughout his life. Over his 80+ year investing career, these principles have helped him to become one of the richest people in the world.
As his well-known business partner, Charlie Munger, once said: “The big money is not in the buying and the selling, but in the waiting.”
Here are some other posts you may enjoy:
- The best index funds to own in 2026 (UK)
- THIS is why investing is better than saving
- How to build wealth in the UK
- State of the UK’s electric vehicle charging network in 2025
You can follow me on X, and find me on Pinterest, Instagram and Facebook.
Leave a Reply