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Investments glossary

Vanilla Strategy


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Civilization is drugs, alcohol, engines of war, prostitution, machines and machine slaves, low wages, bad food, bad taste, prisons, reformatories, lunatic asylums, divorce, perversion, brutal sports, suicides, infanticide, cinema, quackery, demagogy, strikes, lockouts, revolutions, putsches, colonization, electric chairs, guillotines, sabotage, floods, famine, disease, gangsters, money barons, horse racing, fashion shows, poodle dogs, chow dogs, Siamese cats, condoms, peccaries, syphilis, gonorrhea, insanity, neuroses, etc., etc.

— Henry Miller

A vanilla strategy is a common or popular approach to investing or decision making in business. Although the concept is relatively basic, many investors succeed by sticking with a simple, proven strategy such as passive investing through broad exchange traded funds. Similarly, businesses can succeed through plain vanilla strategies such as focusing business lines in areas where there is a clear competitive advantage. In business, however, a vanilla strategy must allow for some innovation as competitive advantage can weaken over time for many products and services.

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