John Bogle was one of the most influential people in finance ever.
He founded Vanguard, the second-largest Asset Management firm in the world with $7.6 trillion under management.
He also wrote phenomenal Books and Papers.
Here are 7 Investing Lessons of Mastermind John Bogle👇
He founded Vanguard, the second-largest Asset Management firm in the world with $7.6 trillion under management.
He also wrote phenomenal Books and Papers.
Here are 7 Investing Lessons of Mastermind John Bogle👇
1. Reversion to the Mean
“Don’t think the past is prologue, it rarely is. Sometimes it’s anti-prologue.”
All extreme deviations from the mean will be short-term.
Over- and underperformance, eventually, they reverse to their mean.
“Don’t think the past is prologue, it rarely is. Sometimes it’s anti-prologue.”
All extreme deviations from the mean will be short-term.
Over- and underperformance, eventually, they reverse to their mean.
2. Leverage Time in the Market
Great wealth is built by compounding.
Two things should be your primary focus.
1. Start as early as you can.
The longer you invest, the larger the leverage of time.
2. Never interrupt the process.
As Buffett said, never lose money.
Great wealth is built by compounding.
Two things should be your primary focus.
1. Start as early as you can.
The longer you invest, the larger the leverage of time.
2. Never interrupt the process.
As Buffett said, never lose money.
3. Invest You Must
Investing is without alternative.
Not investing is the biggest risk people can take.
Without earning a sufficient return on one's capital it’ll certainly lose value over time.
There’s no equal alternative to participating in the markets.
Investing is without alternative.
Not investing is the biggest risk people can take.
Without earning a sufficient return on one's capital it’ll certainly lose value over time.
There’s no equal alternative to participating in the markets.
4. Research Right and Hold Tight
Most people aren’t traders by choice.
Their research before establishing a position is insufficient.
Thus, small changes in price and rather unimportant news are intimidating enough to panic-sell.
Best Protection: Extensive Research
Most people aren’t traders by choice.
Their research before establishing a position is insufficient.
Thus, small changes in price and rather unimportant news are intimidating enough to panic-sell.
Best Protection: Extensive Research
5. Forget the Needle, Buy the Haystack
Speaking about index funds.
Very few investors succeed with stock-picking.
According to Jack Bogle, choosing a broad, diversified index fund will serve most investors a lot better.
Speaking about index funds.
Very few investors succeed with stock-picking.
According to Jack Bogle, choosing a broad, diversified index fund will serve most investors a lot better.
6. Expectations
The historical return for stocks as an asset class is about 7%.
This is the return you can expect from owning a globally, diversified index fund in the long run.
At 7%, your money doubles every ten years.
Doubling in two days through crypto is less realistic.
The historical return for stocks as an asset class is about 7%.
This is the return you can expect from owning a globally, diversified index fund in the long run.
At 7%, your money doubles every ten years.
Doubling in two days through crypto is less realistic.
7. Inactivity is Hard but Necessary
You’re bombarded with news every day.
You’ll hear that everything will go south thousands of times, the same goes for bullish news.
Remaining unaffected by this has been the most profitable thing to do historically.
Stay the course.
You’re bombarded with news every day.
You’ll hear that everything will go south thousands of times, the same goes for bullish news.
Remaining unaffected by this has been the most profitable thing to do historically.
Stay the course.
Summary:
1. Everything Reverses to its Mean
2. Time is your Friend
3. Investing is without Alternative
4. Buy Right and Hold
5. Buy the Haystack, not the Needle
6. Have Realistic Expectations
7. Inactivity is King
1. Everything Reverses to its Mean
2. Time is your Friend
3. Investing is without Alternative
4. Buy Right and Hold
5. Buy the Haystack, not the Needle
6. Have Realistic Expectations
7. Inactivity is King
That's it for today!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
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