Ten Part Guide to Beat the Market

That’s why I wrote If You Can’t Beat ‘Em – Join ‘Em: Investing in Low Cost Index Funds. The basic gist of the matter is that index funds, which can mirror any one of the major stock market indices, have a far lower cost structure than traditional portfolios; a typical index fund, for example, might charge 0.15% versus 1.25% for a regular, run-of-the-mill mutual fund. In addition, the index only sells stocks when they are dropped as a result of mergers, de-listing, or admitting a better company. This results in lower turnover, which was one of our earlier secrets to beating the market.

In short, if you are looking for a no-brain way to own America, Inc., an index fund is probably the way to go.

• Simple Steps to Help Anyone Beat the Market
• Keep Turnover Low and Minimize Frictional Expense
• Use the Tax Law to Your Advantage
• Commit to a Value Investing Philosophy
• Avoid Wipeout Risk at All Costs
• To Beat the Market, View It as a Stock
• Pay Yourself First
• Know When to Throw in the Towel and Buy an Index Fund
• In Investing, Smaller is Normally Better
• Know What Risk You Are Trying to Avoid