JOHN C. BOGLE
Bogle's dreams!
1. A fair shake for shareholders. Design a new industry in which the design is to give the shareholders a fair shake in controlling their own money. Shareholders not management are in control.
2. Serve the investor for a lifetime. Design a system to serve the investor not for a season but for a lifetime.
3. Long term investment horizons. Investment managers turn back the clock & focus on long term investment strategies. Return to our roots as investors because it will be to the economic benefits of the clients plus the group, people, or organization that does so will lead the field in returning corporate America back to its own roots of Democratic Capitalism.
4. Serving long term investors. The market is now designed in a way to meet the demand of the short term investor. Many of the funds are designed to be traded instead of being held for a lifetime. Abandon the fashion model runway approach to investing.
5. Putting fund investors in the driver's seat of fund governance. This way we can honor the expressed demand of (The Investment Company Act of 1940). The federal statute that governs the mutual fund industry. Mutual funds to be organized, operated, & managed in the best interest of their shareholders, rather than in the interest of advisors, & underwriters. Today they are organized operated & managed to benefit their advisors, & underwriters.
2. Serve the investor for a lifetime. Design a system to serve the investor not for a season but for a lifetime.
3. Long term investment horizons. Investment managers turn back the clock & focus on long term investment strategies. Return to our roots as investors because it will be to the economic benefits of the clients plus the group, people, or organization that does so will lead the field in returning corporate America back to its own roots of Democratic Capitalism.
4. Serving long term investors. The market is now designed in a way to meet the demand of the short term investor. Many of the funds are designed to be traded instead of being held for a lifetime. Abandon the fashion model runway approach to investing.
5. Putting fund investors in the driver's seat of fund governance. This way we can honor the expressed demand of (The Investment Company Act of 1940). The federal statute that governs the mutual fund industry. Mutual funds to be organized, operated, & managed in the best interest of their shareholders, rather than in the interest of advisors, & underwriters. Today they are organized operated & managed to benefit their advisors, & underwriters.
TIME IS THE GREATEST EQUALIZER. SO, IF YOUR MONEY IS CONSTANTLY BEING TRADED (TIME), MANAGED (TIME), AND EXPENSED OUT (TIME). YOU THE INVESTOR WILL ALWAYS COME UP SHORT IN THIS HIGH STAKES GAME BECAUSE TIME THEN WORKS AGAINST YOU WITH YOUR DOLLARS CONSTANTLY ON THE MOVE OUTSIDE OF IT'S ORIGINAL PURPOSE AND DESIGN INTO THE HANDS OF ITS HANDLERS.
Recommended Reading by Warren Buffet in his March 2013 Letter to Shareholders
"Clash of The Cultures" Investment vs Speculation by John Bogle:
10 rules of investing from the book
1. Remember reversion to the mean. What's hot today isn't likely to be hot tomorrow. The stock market reverts to fundamental returns over the long run. Don't follow the herd.
2. Time is your friend, impulse is your enemy. Take advantage of compound interest and don't be captivated by the siren song of the market. That only seduces you into buying after stocks have soared and selling after they plunge.
3. Buy right and hold tight. Once you set your asset allocation, stick to it no matter how greedy or scared you become.
4. Have realistic expectations. You are unlikely to get rich quickly. Bogle thinks a 7.5 percent annual return for stocks and a 3.5 percent annual return for bonds is reasonable in the long-run.
5. Forget the needle, buy the haystack. Buy the whole market and you can eliminate stock risk, style risk, and manager risk. Your odds of finding the next Apple (AAPL) are low.
6. Minimize the "croupier's" take. Beating the stock market and the casino are both zero-sum games, before costs. You get what you don't pay for.
7. There's no escaping risk. I've long searched for high returns without risk; despite the many claims that such investments exist, however, I haven't found it. And a money market may be the ultimate risk because it will likely lag inflation.
8. Beware of fighting the last war. What worked in the recent past is not likely to work going forward. Investments that worked well in the first market plunge of the century failed miserably in the second plunge.
9. Hedgehog beats the fox. Foxes represent the financial institutions that charge far too much for their artful, complicated advice. The hedgehog, which when threatened simply curls up into an impregnable spiny ball, represents the index fund with its "price-less" concept.
10. Stay the course. The secret to investing is no secret. When you own the entire stock market through a broad stock index fund with an appropriate allocation to an all bond-market index fund, you have the optimal investment strategy. Discipline is best summed up by staying the course.
1. Remember reversion to the mean. What's hot today isn't likely to be hot tomorrow. The stock market reverts to fundamental returns over the long run. Don't follow the herd.
2. Time is your friend, impulse is your enemy. Take advantage of compound interest and don't be captivated by the siren song of the market. That only seduces you into buying after stocks have soared and selling after they plunge.
3. Buy right and hold tight. Once you set your asset allocation, stick to it no matter how greedy or scared you become.
4. Have realistic expectations. You are unlikely to get rich quickly. Bogle thinks a 7.5 percent annual return for stocks and a 3.5 percent annual return for bonds is reasonable in the long-run.
5. Forget the needle, buy the haystack. Buy the whole market and you can eliminate stock risk, style risk, and manager risk. Your odds of finding the next Apple (AAPL) are low.
6. Minimize the "croupier's" take. Beating the stock market and the casino are both zero-sum games, before costs. You get what you don't pay for.
7. There's no escaping risk. I've long searched for high returns without risk; despite the many claims that such investments exist, however, I haven't found it. And a money market may be the ultimate risk because it will likely lag inflation.
8. Beware of fighting the last war. What worked in the recent past is not likely to work going forward. Investments that worked well in the first market plunge of the century failed miserably in the second plunge.
9. Hedgehog beats the fox. Foxes represent the financial institutions that charge far too much for their artful, complicated advice. The hedgehog, which when threatened simply curls up into an impregnable spiny ball, represents the index fund with its "price-less" concept.
10. Stay the course. The secret to investing is no secret. When you own the entire stock market through a broad stock index fund with an appropriate allocation to an all bond-market index fund, you have the optimal investment strategy. Discipline is best summed up by staying the course.
