July 10, 2018

3 pieces of advice from John Bogle

One of the brightest icons in the financial world, John Bogle revolutionized investing. He championed the unembellished truth that every dollar an investor pays in expenses to a mutual fund, is a dollar he cannot use for his own savings goals. He founded Vanguard in 1975 and promoted index funds to the retail investor.

For new equity investors, here are three basic lessons you can learn from him before you venture into stock territory. Invest you must but forget the “market”. Investing in equities is a winner’s game. Not investing is the only way to guarantee that in the end you will have nothing.

Having said that, to speak of the ‘stock market’ on its own is meaningless. It’s merely the value investors put on all those securities, thousands of different stocks with a value of trillions of dollars. It goes up and it goes down, but in the long run it goes up. Stock market fluctuations are just noise. A giant distraction from the business of investing.

Source: http://www.morningstar.in/posts/47566/3-pieces-advice-john-bogle.aspx

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