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After the painful fiasco of investing in $SEMBCORP MARINE LTD(S51.SI)$ , I resolve not to put myself in such situations again.  That's when I started to look at investing in Index ETFs.  Just plain vanilla ones like $SPDR Russell 3000 ETF(SPTM)$$Vanguard Total World Stock Index Fund ETF Shares(VT)$ .  Here are the reasons why:

1) The 80/20 Rules apply.  This rule says that we can do 20% of the work and get 80% of the results.  So in investing in low cost or diversified index ETFs I might do as well or even better than 80% of active fund managers by just doing 20% of the work but probably a lot less!

2) Saves Time.  When I invest in Index ETFs, I don't have to research stocks.  I don't have to read the Wall Street Journal or Straits Times.  I don't have to because it is not going to change anything I do.  I can spend more time doing something else like exercising, connecting with family and friends.  I invest to live, I don't live to invest.

3)Less Risky.  I avoid taking uncompensated risk with individual stocks or companies.  There is no company bankruptcy I need to worry about.  Even Warren Buffett recommends investing in Index funds like $S&P500 ETF(SPY)$ .

4)Lower Cost.  Costs matter especially over the long run.  When the expense ratio is 0.03% compared to 1 to 2%.  And brokerage fees.  It all adds up.

5)Diversification.  When I invest in $SPDR Russell 3000 ETF(SPTM)$ I invest in 1500 companies in the US. When I invest in $Vanguard Total World Stock Index Fund ETF Shares(VT)$ I invest in 3000 companies worldwide!

There you have it!  The reasons why I invest in Index ETFs.

@Tiger Stars