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
Have rational expectations for future returns and avoid changing those expectations in response to the ephemeral noise coming from Wall Street.
Interpretation
What this quote means
Maintain realistic investment expectations and ignore short-term market fluctuations.
This quote by John C. Bogle emphasizes the importance of having a grounded approach to investing. It suggests that investors should set realistic expectations for their future returns and not be swayed by the constant, often misleading, updates and fluctuations of the stock market. By focusing on long-term goals and resisting the temptation to react to market noise, investors can make more informed and sound financial decisions.
Themes
InvestmentExpectationsMarketNoiseWall StreetReturnsFinance
In practice
Example use cases
A financial advisor might use this quote to remind clients to stay focused on their long-term investment strategy.
More from John C. Bogle
All quotes βWhen 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.
John C. BogleRead
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.
John C. BogleRead
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.
John C. BogleRead
Investing is a virtuous habit best started as early as possible.
John C. BogleRead
Wise investors won't try to outsmart the market.
John C. BogleRead
Similar quotes
A stock certificate is not a tool, like a shovel, or a commodity, like a pound of cheese. What we sell a customer is not a share in a business, but a view of the Elysian Fields. A financier is a creative artist. Our function is to stimulate the imagination. We are poets!
Jean GiraudouxRead
Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert.
Peter LynchRead
The propensity to swindle grows parallel with the propensity to speculate during a boom the implosion of an asset price bubble always leads to the discovery of frauds and swindles
Charles P. KindlebergerRead
How did you go bankrupt?" Two ways. Gradually, then suddenly.
Ernest HemingwayRead
If you owe your bank manager a thousand pounds, you are at his mercy. If you owe him a million pounds, he is at your mercy.
John Maynard KeynesRead
There's so much disagreement about investing, and it's because nobody really knows.
Robert J. ShillerRead