Just Keep Buying
Invest available money promptly in diversified income-producing assets
- Difficulty
- Moderate
- Time to result
- ~ongoing to results
- Steps
- 5
- Confidence
- 99%
Just Keep Buying means continually purchasing a diversified set of income-producing assets as investable money becomes available. It rejects holding cash solely to wait for a dip, because rising markets can leave the eventual dip price above today's price, and fear can prevent buying when a fall finally comes. Regular contributions go in over time; a windfall generally goes in promptly rather than being deliberately held back and averaged in. The portfolio should be diversified and calibrated to the investor's risk tolerance. If immediate investment feels intolerably risky, Maggiulli's answer is to add bonds or other diversifiers rather than preserve an over-risky allocation and attempt to time entry.
Origin
Nick Maggiulli describes the continual purchase of a diverse set of income-producing assets as his investment philosophy in one phrase and calls the book built around it Just Keep Buying.
Core principles
- 01Continual purchasing avoids dependence on predicting market dips
- 02Diversified income-producing assets reduce single-position risk
- 03Holding cash solely for a future dip can mean buying later at a higher price
- 04A portfolio that feels too risky should change allocation rather than wait indefinitely
- 05Consistency is more repeatable than chasing exceptional winners
How to run it
- 1
Protect near-term cash
Keep an emergency fund and money needed soon outside the long-term investment pool. Identify only the money that is genuinely available to invest.
Pro tip Separate liquidity needs before deciding how quickly to enter the market.
Watch out The rule does not require investing emergency cash.
- 2
Choose productive diversification
Select a diversified set of income-producing assets rather than depending on one stock, market, or speculative winner.
Pro tip Use broad, low-cost funds or other diversified assets that do not require constant monitoring.
Watch out A concentrated position can expose the entire plan to one company or local event.
- 3
Calibrate risk
Set a mix of stocks, bonds, and other assets that you can hold through declines. Reduce portfolio risk if investing now feels unacceptable.
Pro tip Solve discomfort through allocation rather than entry-date prediction.
Watch out A portfolio you cannot hold through a fall can defeat the process behaviorally.
- 4
Invest available money
Put regular savings to work as they arrive and generally invest an available lump sum promptly rather than reserving it for a hoped-for dip.
Pro tip Averaging in is acceptable if it is the only way you can act, but recognize the expected opportunity cost.
Watch out Do not confuse buying during a dip with holding cash indefinitely while waiting for one.
- 5
Continue through volatility
Keep following the process through rising and falling markets instead of pausing until the situation feels certain.
Pro tip Let the predetermined allocation carry the risk decision during fearful periods.
Watch out Waiting for the dust to settle can mean missing a rapid recovery.
In the wild
Maggiulli imagines an asset at 100 rising to 200 before falling 20% to 160. The person who waited for the dip feels successful but buys 60 higher than the original available price.
→ The example shows how correct dip detection can still produce a worse entry than investing earlier.
A founder receives £100,000 after selling a company. Rather than stretching entry across ten months solely from fear of a pullback, they protect near-term cash, choose a tolerable diversified allocation, and invest the remainder promptly.
→ The money gains more expected time in the market without relying on a forecast.
Common mistakes
Holding cash for the perfect dip
Markets may rise before falling, and the eventual dip can remain above the price available when the cash was first held.
Using timing to fix excess risk
Maggiulli says an investor who cannot tolerate investing now should choose a less risky portfolio rather than depend on timing.
Chasing a repeatable meme winner
An exceptional speculative gain does not prove that the investor can identify the next winner consistently.
Is it for you?
Best for
It is best for long-term investors who regularly save or receive investable lump sums and do not have a reliable market-timing edge.
Not ideal for
It is not ideal for cash needed soon, emergency reserves, or investors whose chosen allocation exceeds their capacity for loss.
From the transcript
“the continual purchase of a diverse set of income producing assets that is my investment philosophy”
“holding cash and waiting for a dip is bad but buying a dip is good”
“just buy now because if you're in the case where the market's falling over time you're not going to want to buy anyway”
From the episode
The Best Way To Build Your Personal Wealth - Nick Maggiulli - #462
Nick Maggiulli