I hold my hard-earned money in index funds, money market fund, CD and saving accounts. I don’t trade stocks because
- I don’t have interest/passion in tracking individual stocks. I’d rather spend time doing other things I enjoy doing.
- I want to have a good night of sleep every night. I don’t want to spend time worrying about my investment.
- In my opinion, stock trading doesn’t create any real value. I want to become wealthy by creating real values. I believe that one major cause of our current financial mess is that we’ve too many bankers, and too few builders. I like to succeed the old fashion way by working hard, working smart, helping others, and creating values.
- I believe stock market is NOT efficient. Some people have information advantage over others.
- I understand that it’s very hard to beat the market if I have to pay extra fees to personal financial advisors and fund managements.
- I agree with Mark Cuban — Stock Market is for Suckers.
- I respect and admire John Bogle. I believe in his philosophy of index investing. Following his advice in The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits), The Bogleheads’ Guide to Investing, and Enough: True Measures of Money, Business, and Life, I earned positive returns for my 401K in 2008 while most people I know lost 40% or more in their 401K accounts.