John Berg, founder and chairman of Pioneer Group, founder of index fund.

index funds have ushered in a brand-new investment era. Vanguard Group manages more than $1 trillion.

Borg believes that his mission is to simplify complex investments and introduce them into thousands of ordinary American families. Its core viewpoints are:

emphasizing the wisdom of long-term investment;

trying to surpass the market is futile;

high cost brings great burden to successful investment.

Borg put forward 1 investment rules:

Rule 1: Remember the mean regression rule

The mean regression rule clearly shows that it is a very dangerous attempt to choose a fund by examining historical performance. The past can never represent the future.

when the performance of the stock market is completely divorced from its fundamentals, or lags far behind its fundamentals, the mean regression law will come into play sooner or later.

Rule 2: Time is your friend and impulsiveness is your enemy

Enjoy the miracle brought by compound interest. Give yourself enough time and keep in mind the risk of inflation.

One of the most serious mistakes in investment is being lured by the song of Sai Ren in the market, which lures you to buy when the stock price rises and sell when the price plunges. Because it is impossible to guess the market timing.

Rule 3: Choose the right fund to buy and hold for a long time

The next severe test that investors will face is to choose the most appropriate asset allocation method in the portfolio. The purpose of stocks is to provide the growth of assets and income, while bonds are to maintain existing assets and existing income levels.

rule 4: keep realistic expectations for the future

the investment income in the stock market, that is, dividend income plus profit growth, is the decisive factor.

Rule 5: Forget the needle and buy the whole haystack

Cervantes said, "Never try to find a needle in the haystack."

If you are not sure that your investment decision is correct, you can spread your risks and make diversified investments. When you realize how difficult it is to find this needle, just buy the whole haystack.

Rule 6: Minimize the banker's draw

The best opportunity for investors is to own the market itself and minimize the banker's draw.

Rule 7: Never escape risks

When you decide to accumulate long-term wealth with existing funds, you must decide what kind of risks you want to take.

no matter what you do, money will always be at risk.

Rule 8: Beware of the last war

Investors should not ignore the past, but they should not take it for granted that a certain cyclical cycle will exist forever. Nothing will last forever.

Just because individual investors insist on "fighting the last battle" doesn't mean you should do the same.

Rule 9: The hedgehog will defeat the fox

The ancient Greek poet Achilles once said, "The fox has many skills, but the hedgehog has only one trick."

Hedgehog represents the kind of financial institution that only knows one important thing: simplicity is the essence of maintaining long-term investment success. Hedgehogs widely diversify investment risks, buy and hold for a long time, and control costs to a minimum.

Rule 1: Stick to the end

There is no ultimate secret in investment, only the greatest simplicity. These investment rules are all about basic arithmetic and the most basic and uncontroversial principles. But investing is not an easy task, because it requires discipline, patience, perseverance and the most precious quality and common sense.

The financial market always swings back and forth. You need to ignore those fleeting disharmonious factors as much as possible and separate short-term changes from long-term situations.