Lessons From Jack Bogle (IM 921)

“You must wait until the evening to enjoy the splendor of the day.”

Sophocles

Founder and chief executive of The Vanguard Group, Jack Bogle, is considered as one of the greatest American investors. The ideal investment vehicle for Bogle was a low-cost index fund held over a period of a lifetime with dividends reinvested and purchased with dollar cost averaging.

The investing lessons from this great investor are highlighted below:

  1. Pay attention to where your asset are invested.
  2. Choose your asset allocation in accordance with your risk tolerance and your objectives.
  3. Diversify (through low cost index funds)
  4. Don’t trade, don’t do any thing; just stand there.
  5. Avoid the distraction: Wallstreet news, New York times,….

 

 

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