Author Topic: From the source: Jack Bogle's essay to the CFA institute on successful investing  (Read 1332 times)

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Location: Planet Earth
  • Achieved Financial Independence summer 2014. RE'18
For those who want to read some advice and deep wisdom from Jack Bogle* on investing, here's a link to his essay from June 2017 for the CFA Institute. Well worth it, especially for those coming here who are perhaps new to the whole idea of index investing and Bogle's world changing philosophy on how best to grow wealth. What's so wonderful about his advice is just how simple and doable it is for anyone.

*Jack Bogle invented index investing and was a co-founder of the Vanguard leviathan. I wish I could shake his hand and offer my sincere thanks and appreciation for what he's achieved, for me personally and for ordinary investors everywhere.

Some highlights (lifted I confess from CNBC's summary):
Invest you must. The biggest risk facing investors is not short-term volatility but, rather, the risk of not earning a sufficient return on their capital as it accumulates.

Time is your friend. Investing is a virtuous habit best started as early as possible. Enjoy the magic of compounding returns.

Impulse is your enemy. Eliminate emotion from your investment program.

Basic arithmetic works. Net return is simply the gross return of your investment portfolio less the costs you incur. Keep your investment expenses low.

Stick to simplicity. Basic investing is simple—a sensible allocation among stocks, bonds and cash reserves; a diversified selection of middle-of-the-road, high-grade securities; a careful balancing of risk, return and (once again) cost.

Never forget reversion to the mean. Strong performance by a mutual fund is highly likely to revert to the stock market norm—and often below it.

Stay the course. Regardless of what happens in the markets, stick to your investment program. Changing your strategy at the wrong time can be the single most devastating mistake you can make as an investor.