I would always advise young people to follow their star - not my star. They have to live their own life. If they decide they want to go into the investment business, do it, but make it a better business than it is today.
John C. BogleRead
I like Burton Malkiel's 'A Random Walk Down Wall Street.' He comes to the same conclusion that I do - that indexing is the way. My 'Little Book of Common Sense Investing' says pretty much the same thing.
Interpretation
Investing through indexing is a reliable strategy for long-term growth.
In this quote, John C. Bogle emphasizes the effectiveness of index investing, a strategy that advocates for investing in a diversified index instead of attempting to beat the market. He aligns his views with Burton Malkiel, reinforcing the idea that a passive investment strategy is not only sensible but also backed by research and experience.
In practice
During a finance seminar discussing investment strategies.
I would always advise young people to follow their star - not my star. They have to live their own life. If they decide they want to go into the investment business, do it, but make it a better business than it is today.
When our financial system - essentially our money managers, marketers of investment products and stockbrokers - put up zero percent of the capital and assume zero percent of the risk yet receive fully 80% of the return, something has gone terribly wrong in our financial system.
Entrepreneurs or international conglomerateurs, or large financial institutions buy or create mutual fund management companies to create a return on their own capital. It's capitalism at work, where the rewards tend to go to the managers rather than the investors.
Net return is simply the gross return of your investment portfolio less the costs you incur. Keep your investment expenses low, for the tyranny of compounding costs can devastate the miracle of compounding returns.
Investing is a virtuous habit best started as early as possible.
Wise investors won't try to outsmart the market.
The price of a commodity will never go to zero. When you invest in commodities futures, you're not buying a piece of paper that says you own an intangible piece of company that can go bankrupt.
Investors must keep in mind that there's a difference between a good company and a good stock. After all, you can buy a good car but pay too much for it.
Any man who is a bear on the future of this country will go broke.
Those who don't manage their money will always work for those who do
Just because a stock is down doesn't mean it's a great buy.
If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring.
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