Updating an couch

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All that buying forces up the price of the stock until it’s trading for what most investors believe is fair value.

The couple of percentage points you save go directly to your bottom line and can have a tremendous effect over time. This year alone you would save about ,600 by becoming a Couch Potato investor rather than an investor in actively managed mutual funds.We usually recommend that Couch Potato investors follow a classic balanced strategy, which consists of putting 60% of your money in stocks and 40% in bonds, but you may want to adjust the stock component upward if you’re young and willing to take on additional risk in pursuit of larger returns.Conversely, you may want to dial down the stock portion if you’re older and more conservative.Then, if you want to better understand the reasoning behind Potato-hood, pick up .It’s a book by David Swensen, the legendary investor who piloted Yale University’s huge endowment fund to record-breaking performance.

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