Sometimes, I get the following message from new investors: “I’ve been following your index fund approach. I’ve done well over the past five years, so it’s great to see that the strategy works.”

Many of these new investors would say the opposite if the markets turned downward. That’s why such messages of success often make me cringe. New investors rarely understand the bigger picture.

They might read part of my books, Millionaire Teacher or Millionaire Expat. They might read the “what to buy” sections.

But they fail to read every word. In summary, Ian McGugan describes what they also should have read …but didn’t.

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When index investing shines (and when it doesn’t)