Tomas Vik

Book cover

J.L. Collins - The simple path to wealth

Find out how to retire early and think about investing no more than a few hours a year. This book offers a truly simple method for becoming financially independent.

J.L. Collins' method fits in one sentence: “Learn to live way under your means and invest all your excess money into all market Vanguard indexed fund”. It sounds to be too good to be true.

I’m not saying it is too good to be true, only that it sounds that way. If you invest tens of thousands of dollars a year, you want a complex and sophisticated method. The author says that investors are their own worst enemies: they overcomplicate their investment, try to pick the winning stock, and try to time the market. I’m guilty of all those things. After a few years of investing, I see that the author’s advice is the only one I need. I’ve tried to time the market and pick an individual stock. Luckily1, I’ve always lost money on it.

I’ve read the Random Walk Down Wall Street from Burton Malkiel (the 2019 edition), and so I knew the concepts behind index funds, but I’ve learnt a few new things:

If you don’t have time to read the whole book, watch this interview with J.L. Collins. I wholeheartedly recommend reading this fantastic book.

  1. Luckily, because it allowed me to fool-proof my investment strategy early. ↩︎