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
Working for company X and having a substantial portion of your retirement plan in company X is simply exposing yourself to too much risk, because the company is both your employer and the source of your retirement income. So if something goes wrong, you lose both your job and your retirement plan.
Interpretation
What this quote means
Investing heavily in your employer's stock can jeopardize both your career and retirement savings.
John C. Bogle warns against the risks of having a large portion of your retirement savings tied up in the stock of your employer. If the company's performance falters, not only could you lose your job, but you could also compromise your financial security in retirement, highlighting the importance of diversifying investments.
Themes
RiskInvestmentRetirementDiversificationFinance
In practice
Example use cases
During a financial seminar discussing retirement planning.
More from John C. Bogle
All quotes →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.
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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.
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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.
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Investing is a virtuous habit best started as early as possible.
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Wise investors won't try to outsmart the market.
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