Every investor should read John Bogle's book, which is dedicated to supporting retired investors, new investors, and providing useful advice to help them cope with shocks. Big and Wall Street traps.
Ohn Bogle is the founder of the Vanguard Group and loves books. One of his best books - Enough: True Measures of Money, Business, and Life - is considered a true measure of money, business and life. Heritage, the foundation of a career. The book was published in late 2008, when Bogle was 80 years old. He celebrated his 88th birthday in May 2017. For a man who had a heart transplant at the age of 67 as Bogle, everyday living was a priceless gift from God.
Even older, Bogle is constantly inspiring others and giving advice on how to make a low-cost investment. This idea began after he completed his thesis with an absolute score at Princeton University in 1951. Since then, Bogle has continued to create the first Vanguard index fund and bring in hundreds of billions of dollars in profits. For investors for many years afterwards.
Recently, John Bogle shared his investment experience in the CFA Institute's Financial Analysts Journal.
In this article, he analyzes the thoughts of economist Adam Smith (father of capitalism) and Benjamin Graham (father of securities analysts and investor adviser legendary Warren). Buffet).
Here are the lessons of John Bogle's investment that everyone should read:
You have to invest: Do not leave a place to make a profit. The biggest risk that investors face is not the short-term fluctuations of the market, but the risk of not earning enough profit on the accumulated capital.
Time is gold: Investing is a good habit and should be started as soon as possible. Take advantage of the time and enjoy the magic that it brings. Even modest investments since the age of 20 can also be astonishingly amazing throughout your life.
Impatience is the enemy: Ignore the emotional factor when investing, set reasonable goals in terms of profitability and hold the position before the noisy rumors on the market. You should not make an investment decision based on what appears to be the only one you know that has to rely on the reality that has been shared by millions.
Know the basics: Net profit is simply the total return on your portfolio minus the cost you make. Make sure your investment costs are at the lowest level, as double costs can break the power of double profits.
Pursuit of simplicity: Without complex calculations, you just need to reasonably allocate between stocks, bonds and cash reserves, and build a mix of medium and high-end stocks, balancing Risk, profitability and cost.
Do not forget everything will return to the average: A high-yielding mutual fund is likely to return to the stock market average and even lower than the market. Remember the Bible's teaching: "The last one will be the first and the first will be the last."
Keep your position: No matter what happens on the market, continue your investment plan. Changing your strategy at the wrong time can be the most serious mistake you have ever made, just as investors have withdrawn capital during the peak of the financial crisis and they have missed a piece of cake. Fat when the market goes up for the next eight years. "Hold Your Stance" is Bogle's most important advice for you.