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.
Interpretation
Encourage individuals to pursue their own paths and improve upon existing standards.
John C. Bogle emphasizes the importance of personal journey and self-discovery for young people. Rather than simply mimicking the experiences or successes of others, he advocates for following one's own aspirations and striving to enhance whatever field they choose to enter, particularly in the realm of investment. This reflects a broader philosophy of authenticity and improvement in personal and professional endeavors.
In practice
In a graduation speech, one might share this quote to inspire young graduates to forge their own paths.
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 Vanguard Experiment was designed to prove that mutual funds could operate independently, and do so in a manner that would directly benefit their shareholders.
If you are still being hurt by an event that happened to you at twelve, it is the thought that is hurting you now.
Words are how people think. When you misuse words, you diminish your ability to think clearly and truthfully.
But the whim we have of happiness is somewhat thus. By certain valuations, and averages, of our own striking, we come upon some sort of average terrestrial lot; this we fancy belongs to us by nature, and of indefeasible rights. It is simple payment of our wages, of our deserts; requires neither thanks nor complaint. Foolish soul! What act of legislature was there that thou shouldst be happy? A little while ago thou hadst no right to be at all.
The psychologist Gerd Gigerenzer has a simple heuristic. Never ask the doctor what you should do. Ask him what he would do if he were in your place. You would be surprised at the difference
Sometimes angels rush in where fools fear to tread.
If your everyday practice is open to all your emotions, to all the people you meet, to all the situations you encounter, without closing down, trusting that you can do that - then that will take you are far as you can go. And then you'll understand all the teachings that anyone has ever taught.
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