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
The Vanguard Experiment was designed to prove that mutual funds could operate independently, and do so in a manner that would directly benefit their shareholders.
Interpretation
The Vanguard Experiment aimed to demonstrate that mutual funds can function autonomously for the benefit of their investors.
John C. Bogle's quote reflects the revolutionary concept behind the Vanguard Experiment, which was centered on establishing that mutual funds can be managed in a way that prioritizes the interests of shareholders over other financial goals. This paradigm shift laid the groundwork for the modern approach to mutual fund management, emphasizing transparency, lower costs, and direct benefit to the individual investor.
In practice
In a financial seminar discussing the evolution of mutual funds, the quote can be referenced to illustrate Bogle's impact.
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.
Credit cards are like snakes: Handle 'em long enough, and one will bite you.
Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.
The thing I have discovered about working with personal finance is that the good news is that it is not rocket science. Personal finance is about 80 percent behavior. It is only about 20 percent head knowledge.
If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring.
While the move to central clearing has made the system safer, we need to make sure that the central counterparties have the resources and risk-management practices to withstand plausible but severe shocks.
There are two main drivers of asset class returns - inflation and growth.
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