“Just keep buying” by Nick Maggiulli

The author 🖋

Nick Maggiulli is a data scientist and the Chief Operating Officer at Ritholtz Wealth Management.

He holds an economics degree from Stanford University and is the author of a popular financial blog Of Dollars and Data that’s been featured in major outlets like The Wall Street Journal and CNBC.

Key takeaways 🎓

1. Dollar cost averaging

Time in the market is more important than trying to time the market.

Maggiulli emphasizes the importance of consistent, automated investments regardless of market conditions because historically the market trends upward over time.

This approach ensures that we avoid the pitfalls of emotional investing, mitigate the impact of market volatility and benefit from the power of compounding over the long term.

2. A flexible savings rate

Nick suggests saving more when our income is higher and less when it’s lower.

The idea is to save what we can, when we can, rather than sticking to a fixed amount or percentage.

This reduces stress levels and ensures we continue to invest consistently, even during tougher times and periods of lower income.

3. Focus on income

While saving is important, there is a limit to how much we can cut back on expenses.

On the other hand, there’s virtually no limit to how much we can earn.

Maggiulli advocates that focusing on career growth and finding ways to boost our income is generally more effective for building wealth than extreme frugality.

Closing thoughts 🧠

The book offers practical and straightforward advice on building wealth through consistent investing and saving strategies.

I personally very much appreciate Maggiulli’s simplicity and data-driven approach that doesn’t sensationalize investing (which makes it a standout in the personal finance genre).

Nick was also kind enough to share a free chapter of the book with us.