John Bogle was the founder of Vanguard and is the father of index investing.
Here are 12 insights from an investor who has improved the financial health of millions of people.
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Here are 12 insights from an investor who has improved the financial health of millions of people.
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1. "Don't look for the needle in the haystack. Just buy the haystack".
- An appropriate quote for the man who invented the index fund.
- An appropriate quote for the man who invented the index fund.
2. "Time is your friend; impulse is your enemy".
- Time in the market > Timing the market
- Time in the market > Timing the market
3. "The stock market is a giant distraction from the business of investing".
If you invested $10,000 in the S&P 500 since 2003, today you would have $65,000 and a 9.8% annualised return.
If you missed the best 20 days, you'd only have a 2.9% return.
If you invested $10,000 in the S&P 500 since 2003, today you would have $65,000 and a 9.8% annualised return.
If you missed the best 20 days, you'd only have a 2.9% return.
4. "Investing is a virtuous habit best started as early as possible".
- Starting early is amazing, but just starting is what is important.
- Starting early is amazing, but just starting is what is important.
5. "Where returns are concerned, time is your friend. But where costs are concerned, time is your enemy".
- The beauty of compound interest.
- The beauty of compound interest.
6. "The market is often stupid, but you can't focus on that. Focus on the underlying value of dividends and earnings".
- In the long run, the market is a weighing machine, but in the short term it is a voting machine.
- In the long run, the market is a weighing machine, but in the short term it is a voting machine.
7. "In investing, you get what you don't pay for".
- Price is what you pay, and value is what you get.
- Price is what you pay, and value is what you get.
8. "Never underrate the importance of asset allocation".
- Sometimes position sizing is just as important as picking the right stocks.
- Sometimes position sizing is just as important as picking the right stocks.
9. "Learn every day, but especially from the experiences of others. Itβs cheaper!".
- Be a sponge, be a student, always.
- Be a sponge, be a student, always.
10. "Successful investing involves doing a few things right and avoiding serious mistakes".
- Keep it simple, stupid. Downside minimisation is as important as the upside.
- Keep it simple, stupid. Downside minimisation is as important as the upside.
11. "If you put nothing away for retirement, I can tell you, to the last penny, how much you will have when you retire: nothing".
- Every dollar invested is a dollar (plus compounding) for future you.
- Every dollar invested is a dollar (plus compounding) for future you.
12. "The historical data support one conclusion with unusual force: To invest with success, you must be a long-term investor".
- The facts don't lie.
- The facts don't lie.
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