Why I choose "The Majesty of Simplicity" for my signature

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Why I choose "The Majesty of Simplicity" for my signature

Postby Taylor Larimore » Mon Sep 07, 2009 2:51 pm

Hi Bogleheads:

Today, I decided on my forum "signature." I chose "The Majesty of Simplicity." Here's why:

My library contains 34 binders from "Annuities" to "Vanguard" containing the best articles I have saved about successful investing. For my personal forum "signature" I choose "Simplicity" because it is a proven pathway to successful investing and recommended by our mentor, Jack Bogle. "Simplicity" is also a counter-balance to our many discussions using complex portfolios and esoteric techniques promising to "beat the market."

I have read hundred's of investing books (co-authored two of my own) and thousands of articles about investing. I hold a Morningstar record of more than 25,000 posts. The more I learn, the more I understand "The Majesty of Simplicity." Others, who know more than I do, agree:

Scott Adams, author of Dilbert: "I once tried to write a book about personal investing. - After extensive research I realized I could describe everything that a young first-time investor needs to know on one page."

Christine Benz, Morningstar Director of Personal Finance: "Simplicity is one of the greatest--but in my view, woefully underrated--virtues when managing a portfolio."

Bill Bernstein, author of Four Pillars of Investing: ""The more real people I get to know, the more I am convinced the simpler the solution, the better the solution."

Richard Bernstein, Merrill Lynch strategist: "Investors find it hard to believe that ignoring the vast majority of investment noise might actually improve their performance."

Jack Bogle, Vanguard founder: "Simplicity is the master key to financial success."

Jack Brennan, Vanguard CEO and author of Straight Talk on Investing: "It's in the interest of many financial service companies to make you think that investing is difficult.--It's really quite simple."

Warren Buffet: "To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these."

Scott Burns, financial author and creator of The Couch Potato Strategy: "Concentrate on a simple portfolio with two basic assets--a stock index fund and a bond index fund. Do that and you'll enjoy superior performance with less risk."

Andrew Clarke, author of "Wealth of Experience": "In investing, simple is usually more productive than complex."

Jonathan Clements, Wall Street Journal columnist: "Investing is simple. To be sure, you can make it ludicrously complicated."

Paul Crafter, author of "Investment Guide": "After doing it all, I now feel I've come around in a complete circle, ending up with this: The more I learn, the less I really need to know."

Michael Edesess, author of The Big Invesment Lie: "As a mathematician I know when mathematical-sounding analyses are little more than elaborate sales pitches, designed to thoroughly obscure the simple fact that smart investing is non-mathematical and accessible to everyone."

Albert Einstein: "The five ascending levels of intellect are: smart, intelligent, brilliant, genius, simple."

Charles Ellis, co-author of "The Elements of Investing": "KISS investing--Keep It Simple, Sweetheart--is the best and easiest and lowest cost and worry-free way to invest for retirement security."

Paul Farrell, author of "The Lazy Person's Guide to Investing": "Perhaps the most amazing insight I got out of this review of the investment habits of Nobel laureates is the simplicity of their investing strategies."

Rick Ferri, CFA, author of "All About Index Funds": "It does not take much to outperform the average investor. All you have to do is put half your money in the Vanguard Total Stock Market and the other half in an intermediate-term bond index fund. Then rebalance your account once per year. By keeping it simple, you will achieve all the benefits the markets have to offer."

Future Metrics looked at the performance of 224 pension plans over about 14 years compared with the performance of 60% S&P 500 index and 40% aggregate bond index benchmark. Of those 224 plans, only 19 beat that simple benchmark.

Gensler & Baer, authors of "The Great Mutual Fund Trap": "If you simply buy and hold you don't need to read investing magazines, watch financial news networks, subscribe to newsletters, or pay a broker to execute new trades."

Benjamin Graham: "In the stock market, the more elaborate and abstruse the mathematics, the more uncertain and speculative are the conclusions we draw therefrom."

Alan Greenspan, former chairman of the Federal Reserve: "This decade is strewn with examples of bright people who thought they built a better mousetrap that could consistently extract abnormal returns from financial markets. Some succeed for a time. But while there may occasionally be misconfigurations among market prices that allow abnormal returns, they do not persist."

Daniel Kahneman, Nobel Laureate: "All of us would be better investors if we just made fewer decisions"

Edmund Kean: "Complexity is easy. Simplicity is hard."

Michael LeBoeuf, author of "The Millionaire in You": "The master key to wealth can be summed up in just one word: Simplicity."

Leonardo da Vinci: “Simplicity is the ultimate sophistication.”

Peter Lynch, "Magellan Fund" manager: "If you spend more than fifteen minutes a year worrying about the market, you've wasted twelve minutes."

MIT study: "The less well-informed group did far better than the group that was given all the financial news."

Joe Maglia, CEO TD Ameritrade: "Wall Street goes out of its way to make investing incredibly sophisticated and complex because they can make a tremendous amount of money by doing so."

Burton Malkiel, author of "Random Walk Down Wall Street": "The overarching rule for achieving financial security: Keep it simple."

John Markese, CEO of American Association of Individual Investors: "If you have more than eight funds you should slap yourself."

Wm McNabb, Vanguard CEO: "If you can't understand an investment product in five minutes, walk away."

Eric McWhinnie, chief analyst, Wall Street Cheat Sheet: "Keep your investment strategy simple and steer clear of complicated vehicles that are designed to benefit the people selling them."

James Montier, author: "Never underestimate the value of doing nothing."

Morningstar Guide to Mutual Funds: "Good investing doesn't have to be complicated. In fact, simplification may lead to better investment results."

Suze Orman: "We make investing so complicated and it really is not. -- A total market index fund is a great one-stop-shopping choice that provides you instant diversification among different types of stocks."

Mike Piper, financial author: "There's an entire industry built on convincing us that investing is complicated."

Jane Bryant Quinn, syndicated columnist and author of "Smart and Simple Financial Strategies": "You shouldn't buy anything too complex to explain to the average 12-year old."

John Rekenthaler, Morningstar Research Director: "How many funds should you have? Four to six should do."

Rodc on Boglehead Forum: "While doing this financial engineering my wife who does no math just shook her head at my optimization games and said, 'Rod, life is uncertain, get over it.' After a lot of work I discovered much to my surprise, she was right."

Paul Samuelson, Nobel Laureate: "Investing should be like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas."

Bill Schulthies, author of "The Coffeehouse Investor": "When you simplify your investment decisions, not only do you enrich your life by spending more time on families, friends and careers, but you enhance portfolio returns in the process."

Chandon Sengupta, author of "The Only Proven Road to Investment Success": "There is overwhelming evidence that the simplest possible investment method works much better than all the other more complex ones."

Jack Sim: "The culture of consumerism: Buying things you don't need, with money you don't have, to impress people you don't like."

Larry Swedroe, author of "The Successful Investor Today": "The more complex the investment, the faster you should run away."

David Swensen, Yale Chief Investment Officer: "As a general rule of thumb, the more complexity that exists in a Wall Street creation, the faster and farther investors should run."

Andrew Tobias, author of The Only Investment Guide You Will Ever Need: "I believe in selecting the most straightforward and easiest-to-implement strategy for achieving our goals."

Tweddell and Pierce, authors of "Winning with Index Mutual Funds": "Keep it simple. Investment success depends on asset allocation, diversification, and risk management, not on complexity."

Eric Tyson, author of "Mutual Funds for Dummies:" "Planners may try to make it all so complicated that you believe you can't possibly manage your finances or make major financial decisions without them."

Walter Updegrave, editor of MONEY magazine: "Simpler is better. Ignore the siren song of sophisticated investments"

Richard Young, author of "The Intelligence Report": "If you can't run your portfolio taking 60 minutes a month, it's too complicated."

Jason Zweig, Wall Street Journal columnist and author of "The Intelligent Investor": "The less you fool with your portfolio, the less often you'll play the fool."

Warren Buffett: "There seems to be some perverse human characteristic that likes to make easy things difficult."


Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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Postby Opponent Process » Mon Sep 07, 2009 3:29 pm

you could say it's my signature, too. thanks to Taylor et al. :D
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Postby unclemick » Mon Sep 07, 2009 3:36 pm

I of course am in screaming agreement but my quirky lefthanded INTJ humor or whatever one calls it gets in the way:

Don't read books. 'God Looks After Drunkards, Fools, and The United States of America.'

Faith and time in the market not market timing. (quoting?).

I still can't top Mr Bogle's Stay the Course or benchmarking the policy porfolio.

heh heh heh - that's a pretty windy - Yep, I agree. :lol: :lol: :lol:
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Postby Adrian Nenu » Mon Sep 07, 2009 4:17 pm

Only when the tide goes out do you discover who's been swimming naked. - Warren Buffett


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Postby Beagler » Mon Sep 07, 2009 4:20 pm

Many roads to Dublin, as you've often said, Taylor.

Best.
Last edited by Beagler on Sat May 05, 2012 3:58 pm, edited 1 time in total.
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Postby larryswedroe » Mon Sep 07, 2009 4:56 pm

Beagler
Beat me to it (:-))

As I have said before, to me this whole issue is WAY overdone. For example, you can now with just three DFA Core funds have significant exposure to all three risk factors: Domestic Core, international core and EM core. So how much more complex is three funds than two? And even if you add a few more funds like RE and CCF, does that really make things more meaningfully complex? And say you rebalance annually, so how long does it really take to do it? A few minutes. Even with ten funds should not take very long. And even quarterly would not be much either.

Simplicity does have its virtues, but things should only be made as simple as necessary to accomplish the objective with the greatest odds of success, not more simple
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Postby unclemick » Mon Sep 07, 2009 5:13 pm

Vanguard Total World Stock Index balanced with the fixed income vehicle of your choice - based on your age?

Benchmark and tweak as required to reflect pension or SS income or other income streams.

heh heh heh - you can diversify to Mars when we get there. :roll: :wink: . Just could not resist. 8)
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Postby TreeGuy » Mon Sep 07, 2009 5:16 pm

Taylor - Thanks for the reminder and timing as I prepare to post my Portfolio for review.
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Postby Petrocelli » Mon Sep 07, 2009 5:24 pm

About a year ago, I changed my signature because I got about three e-mails a year from people asking if I was really Rico Petrocelli, given that I have his picture as my avatar. I decided to change my signature because I didn't want to piss off the real Rico who, according to published reports, wears a $5,000 watch.

In the meantime, I developed a portfolio with 20 stockes, various cash accounts, 5 individual bonds, and 10 mutual funds. I sometimes use momentum and sometimes don't. Sometimes I horde cash, and sometimes I don't. I loosely kept track of my performance over the years, and convinced myself I was doing just swell.

Last October 1, I decided I would enter every single transaction in M*'s portfolio tracker every Saturday morning. The process can take between 5 and 30 minutes depending on how much is going on.

According to M*, since last October, my portfolio has an annualized gain of 5.22%. M*'s U.S. Market Index has an annualized loss of 11.74%. The EAFA Index has an annualized loss of 6.13%. I think the most of the outoperformance resulted from investing large amounts of cash in January and February. Also, I got some nice returns by buying muni. bonds about 3 months ago, when everyone was predicting California was going to fall in the ocean.

I'm all for simplicity, but there is also nothing wrong with complexity for those who can handle it.
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Postby ruralavalon » Mon Sep 07, 2009 5:41 pm

How about--
Everything should be as simple as it is, but not simpler.
Albert Einstein

From-- http://www.brainyquote.com/quotes/autho ... ein_2.html .
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Postby foodnerd » Mon Sep 07, 2009 6:22 pm

I've been reading Character Counts by Saint Jack and came across this quote which I just love. I don't know if it's an original from Saint Jack, but here it is:

"When there is a gap between perception and reality, it is only a matter of time until the gap is resolved in favor of reality."

FN

P.S. - Boy, Mr. Bogle does like to give a speech, doesn't he.
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Postby Triple digit golfer » Mon Sep 07, 2009 6:48 pm

To me, the whole simplicity thing isn't to make things easier. It's almost as easy to rebalance five funds as three, and rebalancing even ten or 15 really isn't all that hard or time-consuming. For me, the simplicity comes into play when you have people who are unsure of what they want to invest in or aren't sure they want to keep their allocation. Maybe wishy washy beginners or people who always have an urge to tinker. People who see SV losing to the market over a three-month span who might decide to jump ship and be a TSM'er.

For those people, simplicity could save them the headaches and urges to tinker.
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Postby Roy » Mon Sep 07, 2009 6:59 pm

larryswedroe wrote:Simplicity does have its virtues, but things should only be made as simple as necessary to accomplish the objective with the greatest odds of success, not more simple


Good to hear your voice on this, Larry, here, and also through Beagler's quote of you (which I was tempted to use as a tag but Beagler beat me to it!).

And I also agree that the right portfolio is the one most likley to allow that individual to stick to his plan.


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Postby Robert T » Mon Sep 07, 2009 8:39 pm

.
Don’t have a signature, but it would probably be this from Bill Bernstein:

    "Over the long haul, what matters is factor exposure and expense"
Simple enough (irreducible core).

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Postby pkcrafter » Mon Sep 07, 2009 9:06 pm

Roy wrote:
And I also agree that the right portfolio is the one most likley to allow that individual to stick to his plan.

I fully support Taylor on his message. The portfolio most likely to allow most individuals to stick to their plan is the simple one. Basically, it's the elimination of many of the behavioral mistakes that can occur with complex portfolios. If you argue that the complex portfolio is just as easy to maintain, think of why people hold complex portfolios. It's to increase performance. If you accept market performance, there is no reason to introduce complexity. For new investors, it should be preferred. For experienced investors, it is sophistication.


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When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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Postby Adrian Nenu » Mon Sep 07, 2009 9:16 pm

Simplicity has worked during the 1982-2000 bull market because everything was going up and everyone made money. Let's not confuse bull for brains. Investors assumed that the past is an indicator of the future and loaded up on stocks. Equity tilt meant higher returns because stocks will beat bonds in the long run. But not always because the future doesn't have to be like the past and the last 10 years proved it. It's easy to construct asset allocations based on past stock market returns but much harder to do risk analysis and come up with something which will work in the future, and most importantly, avoid catastrophic losses which could set back financial goals many years. Heavy bets on future stock returns are risky because bear markets can cause 50% equity losses. Investors learned that the hard way. Conservative asset allocations provide more consistent returns with less risk and smaller bear market losses. Psychologically easier for investors as well. It's also simple to further reduce bear market losses by using the inverted yield curve as a risk indicator. When the yield curve inverts, market risk increases so equity exposure is reduced to reduce portfolio risk. Simple.

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Postby DriftingDudeSC » Tue Sep 08, 2009 4:09 am

Thank you Taylor for the post. I'm saving the quotes to my favorite places. Also a great list for investment books to read.
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Postby larryswedroe » Tue Sep 08, 2009 9:46 am

Roy
I fully agree that the discipline of sticking to the right plan is far more important than the asset allocation--

The AA determines the risk and return of the portfolio

Discipline determines the actual returns earned by the investor. And they can be quite different

And IMO here is the important point, tilting to value and size allows you to hold less equity risk and have the same expected return. You lower the dispersion of returns also. That means less fat tail risk. That means IMO less likelihood of abandoning a plan. Now you do take on more tracking error. So it is not a free lunch in that sense. So if TE is more likely to cause you to abandon a plan than a large loss than you should not tilt.
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Postby unclemick » Tue Sep 08, 2009 11:57 am

Complexity helps keep a grip on hormones. Watching football in season also helps.

heh heh heh - I never went over 8 or 10 funds in the 1980's - honest cross my heart. 8)

BTW - my alma mater - the UW has set a 120 yr record losing streak for a Pac10 team.
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Postby Roy » Tue Sep 08, 2009 7:21 pm

larryswedroe wrote:And IMO here is the important point, tilting to value and size allows you to hold less equity risk and have the same expected return. You lower the dispersion of returns also. That means less fat tail risk. That means IMO less likelihood of abandoning a plan. Now you do take on more tracking error. So it is not a free lunch in that sense. So if TE is more likely to cause you to abandon a plan than a large loss than you should not tilt.


Agreed entirely, and thanks for a good explanation of the comparative fears and risks. Based on my particular concerns and needs, I prefer the former, and will assume the TE risk that attends it. And either implementation can be accomplished quite simply, as you pointed out.

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Postby Christine_NM » Tue Sep 08, 2009 11:03 pm

Hello Taylor --

Thanks for the inspiration to set up a signature. Here's my effort. It is true to my experience and reminds me of the folly of the perfect plan.
Savor the moment.
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Postby FrugalInvestor » Tue Sep 08, 2009 11:57 pm

Edit
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Postby sdrone » Wed Sep 09, 2009 11:24 am

"When there is a gap between perception and reality, it is only a matter of time until the gap is resolved in favor of reality."

That's interesting. Heh. I just finished "When Genius Fails" and that's pretty much the basis of Long Term Capital Management. Just make sure your timeframe is long enough!
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Postby HomerJ » Wed Sep 09, 2009 1:47 pm

Adrian Nenu wrote:Investors assumed that the past is an indicator of the future and loaded up on stocks. Equity tilt meant higher returns because stocks will beat bonds in the long run. But not always because the future doesn't have to be like the past and the last 10 years proved it.


Technically, the last ten years haven't proved that the future doesn't have to be like the past... We've seen 10 year periods (even 20 year periods) in the past where stocks under-performed... and STILL it was the right thing to keep investing heavily in stocks during those periods...

Not saying that the future will be like the past... I'm saying the last 10 years is no surprise to anyone who lived through 1966-1982 (or who has read about it)...

In fact, one could be silly and say that 2000-2016 looks a LOT like 1966-1982 (which was basically flat for 16 years, with a big 50% crash right in the middle)...

I'm enjoying loading up on stocks from 2000-2016, and will cash out in 2030 when the Dow Jones is at 80,000 :)
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Re: Why I chose "The Majesty of Simplicity" for my signitur

Postby abuss368 » Thu Aug 09, 2012 11:52 pm

Stocks, Bonds, Real Estate, and Cash.

Anymore I am liking Taylor's "Three Fund Portfolio" and Rick Ferri's "Core Four Portfolio".

Simple.
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Re: Why I chose "The Majesty of Simplicity" for my signiture

Postby riskonoff » Fri Aug 10, 2012 10:44 pm

I like the idea of the Majesty of Simplicity for investing and trading and life in general.

For investing....low cost index funds that feature broad diversification amongst a broad range of asset classes (not so enamored with the int'l stuff though).

For debt....pay it off

For trading....strict money management. the market can stay irrational a lot longer than you can stay solvent. the trend is your friend. best to participate in the market than anticipate what the market is going to do.

Tactical investing...buy low and sell high. Read 4 pillars of investing and when the bear roars its head.....buy....buy.....buy....stuff is on sale. Finally, be fearful when people are greedy and greedy when people are fearful (Warren Buffet).

Greetings from Chicago.

Enjoy the rest of the summer!
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Re: Why I chose "The Majesty of Simplicity" for my signature

Postby bobamis » Sat Aug 11, 2012 7:14 pm

Thank you, Taylor, for the "simple" yet majestic signature and the inspirational list of quotes!
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Re: Why I chose "The Majesty of Simplicity" for my signature

Postby ofcmetz » Sun Aug 12, 2012 9:07 am

I've always liked your sig. I'm glad this two year old thread got bumped so I could see the story behind it. Thanks Mr. Taylor.

Edit. Actually almost three year old thread.
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Re:

Postby rustymutt » Sun Aug 12, 2012 10:31 am

larryswedroe wrote:Beagler
Beat me to it (:-))

As I have said before, to me this whole issue is WAY overdone. For example, you can now with just three DFA Core funds have significant exposure to all three risk factors: Domestic Core, international core and EM core. So how much more complex is three funds than two? And even if you add a few more funds like RE and CCF, does that really make things more meaningfully complex? And say you rebalance annually, so how long does it really take to do it? A few minutes. Even with ten funds should not take very long. And even quarterly would not be much either.

Simplicity does have its virtues, but things should only be made as simple as necessary to accomplish the objective with the greatest odds of success, not more simple



Thank you Larry. I couldn't have said it better than you just did. I appreciate simple myself, but not to the point that it cost me return, with greater risk.
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Re:

Postby Leif » Sun Aug 12, 2012 1:09 pm

larryswedroe wrote:As I have said before, to me this whole issue is WAY overdone. For example, you can now with just three DFA Core funds have significant exposure to all three risk factors: Domestic Core, international core and EM core. So how much more complex is three funds than two? And even if you add a few more funds like RE and CCF, does that really make things more meaningfully complex? And say you rebalance annually, so how long does it really take to do it? A few minutes. Even with ten funds should not take very long. And even quarterly would not be much either.

Simplicity does have its virtues, but things should only be made as simple as necessary to accomplish the objective with the greatest odds of success, not more simple


I absolutely agree. If you're not sure about ASSET CLASS diversification you certainly need to look at the evidence, which is available both domestically and internationally, and can be found in books by Larry, Bill and others. My belief in this diversification is the reason for my signature line. It is a real GEM.
Investors should diversify across many asset-classes so that whatever happens, we will not have all our investments in underperforming asset classes and thereby fail to meet our goals-Taylor Larimore
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Re: Why I chose "The Majesty of Simplicity" for my signature

Postby yobria » Sun Aug 12, 2012 2:03 pm

Simple-icty is simple, but as we often see on this board, it sure isn't easy.
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Re: Why I chose "The Majesty of Simplicity" for my signature

Postby tuckeverlasting » Mon Aug 13, 2012 2:52 pm

Since discovering the Bogleheads, I have thought often about "The Majesty of Simplicity". I have even adopted the concept, with great success, as a kind of guiding principle in other areas of my life.

Yet again, many thanks to Taylor! 8-)
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Re: Why I chose "The Majesty of Simplicity" for my signature

Postby Taylor Larimore » Mon Aug 13, 2012 3:41 pm

tuckeverlasting wrote:Since discovering the Bogleheads, I have thought often about "The Majesty of Simplicity". I have even adopted the concept, with great success, as a kind of guiding principle in other areas of my life.

Yet again, many thanks to Taylor! 8-)


Tuck:

When I was much younger, I read Walden, written by Henry David Thoreau. Its basic theme was Simplicity. Thoreau was the great American philosopher who wrote:

"Our life is frittered away by detail. Simplify, simplify, simplify!"

Thanks to Thoreau, Simplicity has long been a guiding principle in other areas of my life too.

http://en.wikipedia.org/wiki/Walden

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Why I chose "The Majesty of Simplicity" for my signature

Postby tuckeverlasting » Mon Aug 13, 2012 4:58 pm

Taylor, you have just reminded me I have a copy of Walden waiting on my bookshelf to be read! I can't wait to get to it.

I am gratified to know you also apply The Majesty of Simplicity across your life. I apply it by generally taking, or at least always seriously considering first, the least complicated approach to whatever the situation may be-- unless there is an overriding and clear-cut reason to add a layer of complexity. Usually, there is not, and the simplest approach has become my default.

I am amazed at how well it works in so many areas and cannot understand how this principle always escaped me before. :D

Thank you again!
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Re: Why I chose "The Majesty of Simplicity" for my signature

Postby Mrs.Feeley » Tue Aug 14, 2012 3:14 am

tuckeverlasting wrote:Taylor, you have just reminded me I have a copy of Walden waiting on my bookshelf to be read! I can't wait to get to it.

I am gratified to know you also apply The Majesty of Simplicity across your life. I apply it by generally taking, or at least always seriously considering first, the least complicated approach to whatever the situation may be-- unless there is an overriding and clear-cut reason to add a layer of complexity. Usually, there is not, and the simplest approach has become my default.

I am amazed at how well it works in so many areas and cannot understand how this principle always escaped me before. :D

Thank you again!


You know I really need to do the same: re-read Walden and apply The Majesty of Simplicity to other facets of life.

What I like about this slogan is that it's given me permission to prune from my financial life some of the clutter without any guilt. For instance...and this is really un-Boglehead-like I know...I'm really tired of having money in CDs scattered in banks around the city and indeed, banks around the country. I'm tired of sitting on the phone trying to transfer a matured CD from one institution to another. I'm tired of driving around the city to attend to CDs.

Two of our in-city banks require one to appear in person with all sorts of I.D. in order to transfer the proceeds of a matured CD into one's money-market account at the same bank or even change the terms of the CD. <sigh> I'm sick of it. One of the banks closed up the branch near our house and now I need to drive 20 miles out on the highway to take my money out of matured CDs. I don't do highway driving. I don't want to become one of those old people who spend their retirement babysitting CDs. When I asked my husband to help with attending to the CDs he got confused at the bank and we ended up with even more CDs.

I've decided we will have one bank with a CD-ladder emergency fund and the rest will go into the Three Fund Portfolio. This will make my life much easier. I really don't want to deal with CDs at Penfed, Ingus, Imus, or wherever. I don't care if the interest is less, I just want my life to be simpler. It's called quality of life. Thank you, Taylor! :beer
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Re: Why I chose "The Majesty of Simplicity" for my signature

Postby abuss368 » Tue Aug 14, 2012 7:47 am

Mrs.Feeley wrote:
tuckeverlasting wrote:Taylor, you have just reminded me I have a copy of Walden waiting on my bookshelf to be read! I can't wait to get to it.

I am gratified to know you also apply The Majesty of Simplicity across your life. I apply it by generally taking, or at least always seriously considering first, the least complicated approach to whatever the situation may be-- unless there is an overriding and clear-cut reason to add a layer of complexity. Usually, there is not, and the simplest approach has become my default.

I am amazed at how well it works in so many areas and cannot understand how this principle always escaped me before. :D

Thank you again!


You know I really need to do the same: re-read Walden and apply The Majesty of Simplicity to other facets of life.

What I like about this slogan is that it's given me permission to prune from my financial life some of the clutter without any guilt. For instance...and this is really un-Boglehead-like I know...I'm really tired of having money in CDs scattered in banks around the city and indeed, banks around the country. I'm tired of sitting on the phone trying to transfer a matured CD from one institution to another. I'm tired of driving around the city to attend to CDs.

Two of our in-city banks require one to appear in person with all sorts of I.D. in order to transfer the proceeds of a matured CD into one's money-market account at the same bank or even change the terms of the CD. <sigh> I'm sick of it. One of the banks closed up the branch near our house and now I need to drive 20 miles out on the highway to take my money out of matured CDs. I don't do highway driving. I don't want to become one of those old people who spend their retirement babysitting CDs. When I asked my husband to help with attending to the CDs he got confused at the bank and we ended up with even more CDs.

I've decided we will have one bank with a CD-ladder emergency fund and the rest will go into the Three Fund Portfolio. This will make my life much easier. I really don't want to deal with CDs at Penfed, Ingus, Imus, or wherever. I don't care if the interest is less, I just want my life to be simpler. It's called quality of life. Thank you, Taylor! :beer


Well put!
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + REITs
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Re: Why I chose "The Majesty of Simplicity" for my signature

Postby KarlJ » Tue Aug 14, 2012 8:21 pm

I must say that my respect for Taylor Larimore was deepened after reading Taylor's reference to Walden earlier in this thread.  Walden by Henry D. Thoreau has influenced my life in many different areas, such as taking up a 10 year Great Books reading program after I retired.
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Why I choose "The Majesty of Simplicity" for my signature.

Postby Nowizard » Mon Jun 16, 2014 4:38 pm

As always, the issue with simplicity is where is the line between simplicity and adequate explanation? Occam's Razor supports the concept that the simplest, adequate answer to a problem is the best. Einstein said to make issues as simple as possible, but not too simple. The balance is often elusive in many areas for many of us.

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Re: Why I choose "The Majesty of Simplicity" for my signatur

Postby placeholder » Mon Jun 16, 2014 5:44 pm

Occam's Razor is a principle for choosing among competing hypotheses to explain a set of data so I have no idea what it would have to do with investing but if simplicity were the main criterion then putting all your investments in a single fund no matter what that is would triumph over the three fund portfolio.
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Re: Why I choose "The Majesty of Simplicity" for my signatur

Postby mur44 » Mon Jun 16, 2014 7:50 pm

Taylor,

Thanks for the Gems on Simplicity.
I am migrating in that direction.
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Re: Why I choose "The Majesty of Simplicity" for my signatur

Postby simpleton » Mon Jun 16, 2014 8:00 pm

Nowizard wrote:As always, the issue with simplicity is where is the line between simplicity and adequate explanation? Occam's Razor supports the concept that the simplest, adequate answer to a problem is the best. Einstein said to make issues as simple as possible, but not too simple. The balance is often elusive in many areas for many of us.


When I am working on a problem, I never think about beauty. I only think about how to solve the problem. But when I have finished, if the solution isn’t beautiful, I know it is wrong.
— RICHARD BUCKMINSTER FULLER
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Re: Why I chose "The Majesty of Simplicity" for my signature

Postby Sunny Sarkar » Sun Sep 14, 2014 6:48 pm

Taylor Larimore wrote:When I was much younger, I read Walden, written by Henry David Thoreau. Its basic theme was Simplicity. Thoreau was the great American philosopher who wrote:

"Our life is frittered away by detail. Simplify, simplify, simplify!"

Thanks to Thoreau, Simplicity has long been a guiding principle in other areas of my life too.

http://en.wikipedia.org/wiki/Walden

Best wishes.
Taylor

Walden, and On The Duty Of Civil Disobedience, by Henry David Thoreau
"Cost matters". "Stay the course". "Press on, regardless". ― John C. Bogle
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Re: Why I choose "The Majesty of Simplicity" for my signatur

Postby paper200 » Sun Sep 14, 2014 8:44 pm

This quote caught my eyes; LeBron James says (maybe many previously):

"It's how you make money when you're asleep that's going to get you there."


http://www.fool.com/ecap/the_motley_foo ... m=referral
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