Vanguard's principles for investment success represent an investment philosophy, the investment philosophy that we think aligns with Vanguard's mission and core purpose, which is to take a stand for all investors, treat them fairly, and give them the best chance for investment success.

Your success as an investor is driven by your actions and the things that you have control over. The amount that you save, how you're spending, how much risk you're taking, how much cost you pay are all largely within your control and will ultimately drive your long-term success.

Goals 

A good goal is one that you can articulate that aligns with your objective and your definition of success for your financial life, but also one that is reasonable and honestly, more importantly, achievable.

Balance 

Balance is about having an appropriate, diversified mix of investments that allows you, in conjunction with your savings, to achieve the goals that you have over time. It's about diversification. It's about incorporating your risk appetite.

Cost 

Cost matter because it's not about what you earn, it's about what you're able to keep or spend toward your goal. One of the largest differences between what your portfolio might return and what you ultimately can spend is the cost of the investments and in many cases taxes that may lead to lower returns. Costs are enduring and over time compound to make very large differences in the outcomes for investors.

Discipline 

Success is driven by discipline. The discipline of sticking to your plan and understanding your goals is an important part of ensuring that long term success. Principles for investment success stand over time across different market environments, as the investment landscape changes, as investors, attitudes and approaches change, these principles remain.