Month: May 2025

|In: Investments|Last Updated:
Build Your Wealth: Step-by-Step Guide to Setting Up a Three-Fund Index Fund Portfolio

The three-fund index fund portfolio is one of the most celebrated strategies for long-term investors, popularized by the “Bogleheads” community after Vanguard founder Jack Bogle. It combines simplicity, maximum diversification, and extremely low cost, making it an ideal choice for beginners aiming to build wealth without complexity. The portfolio achieves global diversification by holding just three low-cost, broad-market index funds.

Step 1: Understand the Three Core Components

The three-fund portfolio is designed to provide exposure to the entire global stock and domestic bond markets, balancing growth potential with volatility mitigation.

ComponentDescriptionInvestment Goal
1. Domestic Stock FundTracks the entire US (or your home country’s) stock market (e.g., the Total Stock Market Index).Long-term growth and capital appreciation.
2. International Stock FundTracks the total stock market of developed and emerging countries outside the domestic market.Global diversification to reduce country-specific risk.
3. Domestic Bond FundTracks the total
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|In: Finance Readings|Last Updated:
The Cornerstones of Wealth: Classic Value Investing Books by Graham and Buffett

The philosophy of Value Investing—the strategy of buying assets priced below their intrinsic worth—is arguably the most successful investment approach ever devised. Its intellectual foundation rests entirely on the works of Benjamin Graham and his most famous student, Warren Buffett. The books penned by or about these giants are mandatory reading for anyone serious about long-term financial success, providing timeless principles that transcend market cycles and technological change.

Benjamin Graham: The Father of Value Investing

Benjamin Graham is the undisputed intellectual father of value investing. His two seminal works defined the discipline and remain the primary texts for investors worldwide.

1. The Intelligent Investor (1949)

Warren Buffett famously calls this “by far the best book on investing ever written.” Unlike a textbook on technical analysis, The Intelligent Investor focuses on investor psychology and philosophical discipline, aimed squarely at the “defensive” (or passive) investor.

  • The Investor vs. The Speculator:
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