Vanguard Founder Jack Bogle on Mutual Funds, Common Sense Investing and the Stock Market
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- เผยแพร่เมื่อ 20 เม.ย. 2015
- The Investment Gospel According to Jack Bogle: “Don’t look for the needle in a haystack. Just buy the haystack.” Does that mean buy, sell or hold - stocks, bonds or gold?
Watch this discussion with John C. Bogle, who founded The Vanguard Group in 1974, served as its chairman and CEO until 1996 and senior chairman until 2000. Fortune magazine named him one of the investment industry’s four “Giants of the 20th Century”. TIME magazine cited him as one of the world’s 100 most powerful and influential people.
Known for his straight talk on Common Sense Investing, and for having invented the Index Mutual Fund, Jack Bogle built Vanguard to be the world’s largest mutual fund organization, representing 170 funds with current assets totaling more than $2 trillion. He has written 10 books, received honorary degrees from 14 universities, served on many important commissions and boards, received countless honors, and to tally changed the face of investing in the world
I have followed Jack Bogle all last year, and he's been right thus far. With SPX above 5000 what assets/sectors will drive the next bull trend. I cashed out before the last dip, now I have less than 200k to average down with. Any ideas? Should I get into short positions in the beginning Q2 or is it headed higher?
Don't be in a hurry to get back in. The market needs several days of strong performance to signal that the downturn might be over; It's a time to be largely, if not entirely, in cash
Holidays are over, there has been heavy spending for households. I hope the Santa Rally keeps going strong.
I feel that one. I just bought SOFI, TSLA NVDA, I also included MSFT and ServiceNow, as well as some energy plays like WFRD stock.
It's unclear which stocks and sectors will continue driving the uptrend. Stay away from readjusting if you do not have guidance from a plannner and investment strategist. My finances have been in order since I got a wealth planner like Jennifer with large following working for me.
Who is this Jennifer you speak about? I have been searching for an advisor who can direct us on where the economy is headed new year.
John Bogle has done more for the average investor and the little guy then anyone else in the industry. His nickname St. Jack is well deserved. I for one have taken his advice for the last 20 years and its the smartest thing I ever did. Thank you Mr. Bogle for leveling the playing field.
stephen geraci wow I have been indexing at vanguard since 2009 myself. Like you I am happy overall. It is amazing how simple basic investing and dollar cost avg have worked so well.
Do I need to buy ETFs? Or what exactly have you guys bought? Cause I've been trying to buy index funds but nobody will sell 😭
@@Carramoz Buy them at Vanguard. I own one fund which is the Vanguard Balanced Index Fund Admiral shares which is 60/40 stocks and bonds. It's the functional equivalent of having your entire portfolio overseen by a fiduciary.
I believe you would serve yourself well to listen to John Bogle once a month and totally disregard all of the financial TV shows.
LOL. I do that, but on a daily basis. It's kind of like an addiction to hear someone with common sense and clarity.
Does John have a monthly podcast?
I'm interested in starting to invest in stocks any recommendations?
Not that I am aware of.
No but he does have a blog. It is Johncbogle.com. There is also a group on the internet of people who follow his investment advice. They are called the Bogleheads. They will answer any questions you may have about investing like Jack suggests. They are very experienced investors and many are professionals.
Proud to be a Vanguard investor. This is what a role model looks like, he cares about PEOPLE.
Absolutely!
Proof that you can do well in business without ripping people off!
John C.Bogle deserves nobel prize for what he has done for small investors inspite of heart transplant in 1996.
True.
So true, and I had no idea he had a transplant. He was a legend.
"I give a damn about people".
That's why I'll always hold St. Jack close to my heart. RIP big guy. 🙏🏻
What a gentleman. A real godsend to the investing community
I'm a vanguard investor. I will be so all my life.
0:26 Should we buy or sell in 2015?
2:47 Because the Fed holding rates down, stocks up
3:16 I never recommend when to buy or sell (market timing) (just stick to consistent investing)
3:39 in long run, stocks reflect company earnings and value (dividends and earnings growth)
4:51 returns come from fundamentals
6:17 predicted 7% annual return for next decade
7:12 always be in the market (trying to time is not recommended)
8:41 the stock market is a giant distraction to the business of investing
9:51 in 1951 began work at Wellington
17:17 Adam Smith: the principal role of producer to serve consumer
24:20 I brought out index funds in 1976
48:17 the jumpy markets don't matter long-term
49:55 the less active you are (trading), the better you do
51:18 "now you can trade all day long" -- what kind of would want to do that?
53:45 first question about smart beta
55:34 consumer financial protection agency
56:39 inflation prediction
58:46 trillion dollar deficit
1:01:29 clap for statement
1:04:54 oh to be 70 again
1:05:25 unwise to buy individual stocks and sectors
I can sit and listen to Jack all day..
if we had a bunch of ceo's like this guy the country would be prospering for rich and poor alike.
How many people have you ever met that were that sharp at 87? Holy shit!
I know!! And let's not forget, he had a heart transplant years ago.
@@stemikger 20 years before. at 68. Crazy hu.
Joe Biden!
@@leepialong yeah, sleepy Joe he's a real beauty. Guy doesn't know where he's at
@@TheSmartLawyer He's at the Whitehouse, president of the United States don't you know
RIP Jack Bogle your common sense investment style - will continue to stand with the test of times!
Thank you Mr. John Bogle. I read your books at my local library and have learned a great deal. You are a gentleman and a scholar. Thank you for sharing your knowledge. A 60/40 VTI and BND mix has worked for me. I’ve not been hitting the ball out of the park. Wife and I raised two kids, roof over our head, and have daily food on the table. It’s ENOUGH!
Him and Buffett are my hero's.
If you want to know the investment principles of Saint Jack Bogle ,start by reading his 10 books. 1.Bogle on Mutual Funds (1993). 2. Common sense on Mutual Funds.(1999) 3. John Bogle on Investing (2000). 4. Character Counts (2002) .5.The battle for the soul of Capitalism.(2005) 6.The little book of Common sense Investing.(2007). 7.Enough (2008) 8.Common Sense on Mutual Funds .Fully Updated 10th Anniversary Edition (2010) A MUST READ. 9. Don't Cont on it.(2011). 10. The Clash of the Cultures. (2012). These 10 books are my best Investment of life. Thanks John Bogle.
all first rate choices--Common Sense on Investing and the little book are excellent--I would start with the shorter book
Read the first four. Character Counts was just the speeches he gave throughout his career. Repetitive and boring. Common Sense is the best I read.
Thanks. I will buy his books...wish I knew about him back in 1998....but never too late learn
Vanguard investor for just a short time but what a lovely, honest, diligent man. RIP Jack
Every word he spoke was pure gold
This is amazing. I’ve been DCA’ing into VOO every week like clockwork for some time now. If I can invest $500 every week from 25 to 65 I should be in great shape.
It is refreshing that Jack does not the view consumer as a cash cow to be milked.
Different strategy. It's win/win.
Admirable man!!
Saint Jack! I'm very proud to be a Vanguard investor.
Would have loved to have interviewed, Jack, Incredible thinker.
Great guy! Quite possibly the most honest capitalist in history!
very informative video
it so good and helpful!!
Wall Street: 'Index funds are un-American'. Now who is eating humble pie? Even active managers and mutual finance advisers have index funds in their portfolios. RIP Mr. Bogle.
He could have charged 1% for some of his funds but he chose in favor of the people’s benefit of .04 of a percent in fees...
Based off 100k invested that’s a difference of 1000 dollars in fees vs 40.00 for vanguard fees.
Thank you mr. bogle
The microphone is terrible.
The marketing outweighs the real investing that brokers should do.
Great advice John Boyle.
How can you have more mutual funds than stocks in the market ?
Buy index fund, dump stocks.
I'm not so sure vanguard is still following bogle's philosophy, as Vanguard uk seem to be trying to push active funds now. And I was told i should be putting a minimum of £100 per month into each individual fund if I wanted to do a regular monthly investment into my portfolio. Basically I wanted to do 40% bonds using the vanguard global bond index fund, I was told if I put £160 per month in total that the 40% into the bond fund wouldn't work very well as it's domiciled in Ireland, I needed to put minimum £100 into each fund so that would make things a bit restrictive and only realistic option use lifestrategy or target date retirement fund. Most other platforms here allow small amounts as low as £25 per month into each fund as regular investment. A bit disappointing as the vanguard platform fee is very low. I was told it's because of the cost of each unit in that fund, but didn't have any problems with another platform apart from their charges
What book is he referring too ?
Taking early notes from Warren as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.
Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals
Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
There are a lot of independent advisors you might look into. But i work with Nicole Desiree Simon , and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
🤫 sssssssshhh!
You guys are all good. I love you. ❤❤️
I haven't yet understood how the P/E ratio factors into Jack Bogle's calculation of the future S&P return, can someone explain it to me?
Excessively high price to earnings ratios precede low returns. Low price to earnings ratios will precede higher returns. At least I hope I'm telling you something in the ballpark of what is true. I think it relates to the idea that earnings and dividends are the investment return whereas everything else that adds to stock price is speculation which just increases the price to earnings ratio.
The PE ratio reflects what Bogle calls “speculative” return in this discussion, meaning that the future stock price is partly reflective of what investors are willing to pay for a dollar of earnings in the future.
His other two factors (fundamentals) for future price, current dividend yield and earnings growth, can be much better in the future but the stock price could be lower if the PE is lower.
The future PE is a pure guess so it is a spectacular return while current dividend yields and earnings growth are more fundamental and can more easily be estimated.
My take on what Jack said: Current P/E ratio is high at 20x (based on historical averages) and will most likely revert to 15x over the next 10 years.
So 20 minus 15 = 5 or a 25% decline is to be expected over a 10-year period (if you're trying to forecast).
Divide that 25% decline by 10 years and you have a decline of 2.5% per year looking forward (projected growth, or in this case shrinkage).
In other words, you can expect lower growth looking forward based on the high cost of stocks relative to their earnings at this time.
SAD THAT I AM JUST DISCOVERING THIS
+Howard Bogle It is never too late! Don't beat yourself up.
+Howard Bogle ur a black man just like me..just the very fact that you are even listening to this says a lot about you becuz we both know MOST young black American don't even listen to shit like this....they would rather listen to lil wayne or a reality show...
You look young? I didn't discover this until I was in my 30s. Either way, it's never too late.
stephen geraci 30's is not old. Most people don't really mature until they reach their 30's.
It's surprising when you consider your surnames are the same.
Don't look for the needle ,buy the haystack . The haystack is "The total world stock market index fund". Jack Bogle.
Yeah this comment has not aged well. Bogle has been right on a US portfolio. Your past 5 years of VT has done well, but not as well as VTI. But you knew that already. And I'm sure this next year is when international outperforms ;)
@@justinm7621 That's the problem nobody knows if the US will continue to outperform, and it maybe ok for a US resident investor but for investors in say the UK there's the currency fluctuation to consider
can yall give me a summary of this video? I really need it for Extra credit pleaseeeee. It would be nice if its a page long.
down badd #bus010
LMAO
Why he assign us a 1 hour video bro😭
good old days when people could express opinion talking seriously without having to show up like a clown to attract viewers and followers. Thanks for giving the world passive investing
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@WilliamEthan00 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. Bridget Mary Turow, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@@WilliamEthan00 Bridget Mary Turow
Lookup with her name on the webpage
Go away bots
They should’ve made this guy the sec chairman
Currently Vanguard has over $8 trillion in management (September, 2022)…
🇺🇸
Quote of the day though "Well it's all from without, because there's only so much you can do from within." And the 'haystacks' the whole thing; index funds - averages, ideally into a hedge fund type of vehicle.
Oh, now that is the worst investing advice I have ever read.
Hedge funds are dangerous because their managers do the riskiest possible things. They act like stupid, teenage boys.
Warren Buffet has said that for the average investor, an index mutual fund is the way to go, and he is right.
+Anthony Starfield Sir, for a person with minimal capital , who is a beginner; should you I invest in the S&P 500 index fund or what?
yes
And the brokers are telling you to trade with a stop loss. Lol This is the surest way to lose money.
Sure is
jack bogle for president ,he actually appears to give a ___ about something other than $
The man who single handed saved millions of investors from the arms of greedy money manager
The minor xylophone atypically destroy because felony geometrically separate qua a tacky hovercraft. stiff, thirsty mouth
...TEAMSTER"s...UNION"..i was with back in the ..."80"s...WE ALL LOST-$$$..M-o-n-e-y"...with.." VANGUARD and their..401-K"
No, you lost money. I made what you lost and then some at the same time. You sold when you lost your balls. I keep on buying. Just got a Tesla model S
You didn't lose anything unless you sold. If you had 50,000 in the market in 1980 and you never added a dime, you would have a million now.
Elijah Mumford jr would you have done any better with anyone else? Who managed your 401k's ? Was it vanguard? Or did your union manage them?
only if you panicked, sold out and never got back in--I had $100,000 IN 2007 and 275,000 now--and I started with $4000 in 1981
I went from divorced, with over 100,000K in debt; to retired with a net worth of approx 1.2 million (not including, my paid-for-home) in just under 30 yrs. NO college degree..NO inheritances, and never earned more than $95K/yr, while I was working. I simply followed Mr. Bogle's advice, in "Common Sense on Mutual Funds". So, if I can "make it", ANYONE can! And, God Bless Mr. Bogle, and the magnificent United States of America!
Absolutely zero diversity in that room, lol