12 Pillars of Investment Wisdom

John Bogle has established the 12 pillars of wisdom. I have edited them in a simple version here for my own references. One can find the original 12 pillars at http://www.vanguard.com/.

1. Employ common senses in investments.
2. Apply simplicity in investments.
3. Appreciate the compounding power of time.
4. Monitor carefully the risk-return relationship.
5. Diversify in investment portfolios.
6. Notice the management costs of funds.
7. Utilize fully the index funds in portfolios.
8. Stay with mainstream funds in portfolios.
9. Balance btween principle values and income streams.
0. Remember that both good and bad times will pass with time.
1. Believe that the market is wiser than its participants.
2. Have a long-time investment goal.