Morgan Housel: "Keep Investing Simple"

"When you can look forward and really have a better understanding of what [a] company is going to look like in 30 years, that's when compound interest works for you."

That's what Motley Fool columnist Morgan Housel tells host Matt Trogdon. This is a theme Housel covered extensively in his most recent column, "I Prefer to Keep Things Simple."

Housel continues: "I really think what people should want in investing is not necessarily a company that's going to have explosive growth over the next five years. For me, what I want is a company that's going to have mediocre growth for the next 30 years. The odds for success are much higher in that situation."

Housel also underscores the need for investors to invest in companies that are easy to understand. He and Trogdon contrast the complexity of a company like Citigroup  (NYSE: C  ) with the simplicity of a company like Chipotle Mexican Grill (NYSE: CMG  ) .

"I understand black beans," says Housel. "I don't understand tri-partied repo transactions."

Watch the video below for more of Housel's insights on the beauty of keeping investing simple.

Free 30-day trial: The Motley Fool's flagship service
Tom and David Gardner founded The Motley Fool over 20 years ago with the goal of helping the world invest...better. Their flagship service, Stock Advisor, has helped thousands of investors take control of their financial lives and beat the market. Click here to sign up today.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3037301, ~/Articles/ArticleHandler.aspx, 10/2/2014 2:55:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASD 4,422.09 -71.31 -1.59%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/1/2014 4:00 PM
C $51.10 Down -0.72 -1.39%
Citigroup Inc CAPS Rating: ***
CMG $662.23 Down -4.36 -0.65%
Chipotle Mexican G… CAPS Rating: ***

Advertisement