The Simple Path to Wealth: Your road map to financial independence and a rich, free life

Collins explains why his recommended two-fund portfolio excludes international funds despite their frequent inclusion in mainstream investment advice. He argues that international funds introduce unnecessary complexity, risk, and cost while offering little additional benefit. To support this, he outlines three reasons: added currency and accounting risks, higher expense ratios compared to VTSAX, and sufficient global exposure already built into major US companies. Collins names firms like Apple, Coca-Cola, Microsoft, and GE to show that many US-listed companies earn a substantial share of their revenue overseas, effectively providing international diversification within VTSAX.

The analysis reflects Collins’s consistent bias toward simplicity, cost-efficiency, and US-centric investing. His reasoning is rooted in post-2008 caution, countering diversification strategies that he sees as fear-driven. While this perspective offers clear benefits for US-based investors, it may not fully consider the needs of global readers or the long-term potential of emerging markets. Still, Collins maintains a flexible stance by suggesting low-cost international fund options for readers with differing views. His emphasis on transparency, effort reduction, and understanding what one already owns reinforces the book’s central philosophy of investing with clarity and intentionality.