"An Interview With A Boglehead"

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
User avatar
Topic Author
Taylor Larimore
Advisory Board
Posts: 28818
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

"An Interview With A Boglehead"

Post by Taylor Larimore » Fri Jun 19, 2015 8:36 am

Bogleheads:

Barry Barnetz, a long-time Boglehead and wiki administrator, alerted me to a Boglehead interview by MD Magazine. You will love the first question and answer:
Question: What do you see as the advantages of being a Boglehead?

Answer: It works!
An Interview With A Boglehead

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

bloom2708
Posts: 6964
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: "An Interview With A Boglehead"

Post by bloom2708 » Fri Jun 19, 2015 8:45 am

Thanks for the link Taylor!
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words. Whole food, plant based. Bing it.

Call_Me_Op
Posts: 7384
Joined: Mon Sep 07, 2009 2:57 pm
Location: Milky Way

Re: "An Interview With A Boglehead"

Post by Call_Me_Op » Fri Jun 19, 2015 8:50 am

I like the author's final comment:

"Clearly the boglehead strategy has worked for Robert XXX. The question is, does this straightforward approach achieve the best results for every portfolio, especially those in the high-net-worth category?"

Why does an approach need to achieve "the best" result for "every portfolio" to be worthy? That seems to be a ridiculously high (and nebulously defined) standard.
Best regards, -Op | | "In the middle of difficulty lies opportunity." Einstein

dbr
Posts: 30798
Joined: Sun Mar 04, 2007 9:50 am

Re: "An Interview With A Boglehead"

Post by dbr » Fri Jun 19, 2015 9:13 am

I really like going direct to the BH philosophy right away. That is the best explanation for why it works.

The "best" results is the entry point for crooks and charlatans to cost people a lot of money.

There is one disturbing issue though. If BH's need to be computer literate (implied, and most are) is enough attention being given to what happens to people that are not? It is an issue in some threads from time to time. Even VPAS requires keeping accounts on line, but the interaction by non computer means may be enough. It isn't face-face, which, unfortunately is the selling opportunity for the crooks. Will this become moot as the present elders who came of age without computers pass on?

User avatar
nisiprius
Advisory Board
Posts: 39459
Joined: Thu Jul 26, 2007 9:33 am
Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: "An Interview With A Boglehead"

Post by nisiprius » Fri Jun 19, 2015 9:33 am

You couldn't ask for a better presentation of what it means to be a Boglehead. Very nice.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

User avatar
whatusername?
Posts: 639
Joined: Wed Feb 18, 2015 6:08 pm

Re: "An Interview With A Boglehead"

Post by whatusername? » Fri Jun 19, 2015 9:53 am

Call_Me_Op wrote:I like the author's final comment:

"Clearly the boglehead strategy has worked for Robert XXX. The question is, does this straightforward approach achieve the best results for every portfolio, especially those in the high-net-worth category?"

Why does an approach need to achieve "the best" result for "every portfolio" to be worthy? That seems to be a ridiculously high (and nebulously defined) standard.
CALPERS reached the same conclusion and switched to indexing with their many billions. http://time.com/3397072/index-funds/. Good enough for me on that score.

staythecourse
Posts: 6993
Joined: Mon Jan 03, 2011 9:40 am

Re: "An Interview With A Boglehead"

Post by staythecourse » Fri Jun 19, 2015 11:16 am

whatusername? wrote:
Call_Me_Op wrote:I like the author's final comment:

"Clearly the boglehead strategy has worked for Robert XXX. The question is, does this straightforward approach achieve the best results for every portfolio, especially those in the high-net-worth category?"

Why does an approach need to achieve "the best" result for "every portfolio" to be worthy? That seems to be a ridiculously high (and nebulously defined) standard.
CALPERS reached the same conclusion and switched to indexing with their many billions. http://time.com/3397072/index-funds/. Good enough for me on that score.
Who cares what CALIPERS thinks or does.

I still remember a simple graph in Dr. Bernstein's "Four Pillars" showing that almost all of the big pensions failed to beat a simple 60/40 portfolio of index funds. That should have been MORE then enough evidence. if they wanted more then BHB and BSB studies should have put the final nail in the coffin on active management.

The question I would have for CALIPERS is WHY did they not adopt indexing earlier? I don't think they should get a pat on the back to accept something that has been known for DECADES. Pity for the pensioners that they left A LOT of money on the table over the last 20+ yrs. because their "brilliant" money managers are not that brilliant after all.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

User avatar
SpringMan
Posts: 5411
Joined: Wed Mar 21, 2007 11:32 am
Location: Michigan

Re: "An Interview With A Boglehead"

Post by SpringMan » Fri Jun 19, 2015 11:27 am

Nice interview but there were no surprises for us Bogleheads. Thanks for the link.
Best Wishes, SpringMan

User avatar
SkierMom
Posts: 227
Joined: Thu Nov 29, 2012 8:53 pm
Location: Northern CAli

Re: "An Interview With A Boglehead"

Post by SkierMom » Fri Jun 19, 2015 11:31 am

whatusername - thank you for the CalPERS link! I may be too optimistic, but I think CalPERS is one of the better managed state pensions out there.

User avatar
whatusername?
Posts: 639
Joined: Wed Feb 18, 2015 6:08 pm

Re: "An Interview With A Boglehead"

Post by whatusername? » Fri Jun 19, 2015 11:59 am

staythecourse wrote:
whatusername? wrote:
Call_Me_Op wrote:I like the author's final comment:

"Clearly the boglehead strategy has worked for Robert XXX. The question is, does this straightforward approach achieve the best results for every portfolio, especially those in the high-net-worth category?"

Why does an approach need to achieve "the best" result for "every portfolio" to be worthy? That seems to be a ridiculously high (and nebulously defined) standard.
CALPERS reached the same conclusion and switched to indexing with their many billions. http://time.com/3397072/index-funds/. Good enough for me on that score.
Who cares what CALIPERS thinks or does.

I still remember a simple graph in Dr. Bernstein's "Four Pillars" showing that almost all of the big pensions failed to beat a simple 60/40 portfolio of index funds. That should have been MORE then enough evidence. if they wanted more then BHB and BSB studies should have put the final nail in the coffin on active management.

The question I would have for CALIPERS is WHY did they not adopt indexing earlier? I don't think they should get a pat on the back to accept something that has been known for DECADES. Pity for the pensioners that they left A LOT of money on the table over the last 20+ yrs. because their "brilliant" money managers are not that brilliant after all.

Good luck.
When the question is whether the strategy is going to be scalable based on portfolio size, pension fund fiduciaries who have tried everything from active management, alternative management and passive management are people who meet the brief. There are very few people with a few billion that speak openly about their thoughts on passive index investing. Buffet and Bogle being the notable exceptions.

I'm not asking you to care or invest like a pension fund. I'm simply pointing out that the author's rhetorical question about scalability isn't rhetorical at all. It's just sloppy writing and/or sloppy journalism.

User avatar
Bulldawg
Posts: 523
Joined: Mon Jan 05, 2009 8:30 am
Location: Hotlanta

Re: "An Interview With A Boglehead"

Post by Bulldawg » Fri Jun 19, 2015 12:04 pm

Thanks Taylor !

Noticed the columnist was an MD ... wondered if Bernstein and EmergDoc might be interesting interview material to her for other columns ?
" IN GOD WE TRUST " ( official motto of the United States )

User avatar
Maynard F. Speer
Posts: 2139
Joined: Wed Mar 18, 2015 10:31 am

Re: "An Interview With A Boglehead"

Post by Maynard F. Speer » Fri Jun 19, 2015 1:58 pm

staythecourse wrote:
whatusername? wrote:
Call_Me_Op wrote:I like the author's final comment:

"Clearly the boglehead strategy has worked for Robert XXX. The question is, does this straightforward approach achieve the best results for every portfolio, especially those in the high-net-worth category?"

Why does an approach need to achieve "the best" result for "every portfolio" to be worthy? That seems to be a ridiculously high (and nebulously defined) standard.
CALPERS reached the same conclusion and switched to indexing with their many billions. http://time.com/3397072/index-funds/. Good enough for me on that score.
Who cares what CALIPERS thinks or does.

I still remember a simple graph in Dr. Bernstein's "Four Pillars" showing that almost all of the big pensions failed to beat a simple 60/40 portfolio of index funds. That should have been MORE then enough evidence. if they wanted more then BHB and BSB studies should have put the final nail in the coffin on active management.

The question I would have for CALIPERS is WHY did they not adopt indexing earlier? I don't think they should get a pat on the back to accept something that has been known for DECADES. Pity for the pensioners that they left A LOT of money on the table over the last 20+ yrs. because their "brilliant" money managers are not that brilliant after all.

Good luck.
I wonder if this will prove to be a typical case of terrible market timing on the part of CALIPERS ..?

Image
"Economics is a method rather than a doctrine, an apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions." - John Maynard Keynes

robert88
Posts: 366
Joined: Tue Nov 25, 2014 6:27 pm

Re: "An Interview With A Boglehead"

Post by robert88 » Fri Jun 19, 2015 9:13 pm

staythecourse wrote: The question I would have for CALIPERS is WHY did they not adopt indexing earlier?

Good luck.
Their former CEO taking bribes might explain that.

User avatar
stemikger
Posts: 4950
Joined: Thu Apr 08, 2010 5:02 am

Re: "An Interview With A Boglehead"

Post by stemikger » Fri Jun 19, 2015 9:43 pm

Thank you for the link Taylor!!

Always great to hear real life examples of Common Sense Investing.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

User avatar
gasdoc
Posts: 1748
Joined: Mon Nov 03, 2014 8:26 am

Re: "An Interview With A Boglehead"

Post by gasdoc » Fri Jun 19, 2015 9:46 pm

Thanks, Taylor, for the article reference. I am sending a copy to my mother, who is rapidly becoming a Boglehead, albeit one that is not computer literate. She is in the process of getting me computer access to her accounts so I can complete transactions online on her behalf. The whole rebalancing thing still confuses her, however. I get comments like "but it has been doing so well!" when I recommend she sell a high performing asset. :oops:

gasdoc

Lafder
Posts: 3999
Joined: Sat Aug 03, 2013 7:56 pm
Location: East of the Rio Grande

Re: "An Interview With A Boglehead"

Post by Lafder » Sat Jun 20, 2015 11:19 am

Yes it was a good simple article.

I was amused by the model in their photo "Though not the Robert XXX interviewed, this model is representative of most bogleheads who are computer literate. "

Representative perhaps, but I dare say half or less the age of many bogleheads on the forums.

And are they saying many Bogleheads are not computer literate!?
Lafder

User avatar
mickeyd
Posts: 4758
Joined: Fri Feb 23, 2007 3:19 pm
Location: Deep in the Heart of South Texas

Re: "An Interview With A Boglehead"

Post by mickeyd » Sat Jun 20, 2015 2:06 pm

Thanks for the article Taylor.

I liked this quote from Robert XXX
Accept what the market gives. Don’t try to beat it.
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

Norris
Posts: 526
Joined: Tue May 08, 2007 10:04 am

Re: "An Interview With A Boglehead"

Post by Norris » Sat Jun 20, 2015 2:24 pm

Good stuff as per usual and I thank you, Taylor! :happy

Norris
Life is really simple, but we insist on making it complicated. Confucius

sschullo
Posts: 2516
Joined: Sun Apr 01, 2007 8:25 am
Location: Rancho Mirage, CA
Contact:

Re: "An Interview With A Boglehead"

Post by sschullo » Thu Jun 25, 2015 7:57 am

thanks Taylor,
The only Boglehead tip that some of us missed was the first one, "invest early and often."
But the Boglehead methods are so powerful, even us who started late and learned investing, later in life with much lower salaries than high-net-worth individuals, can succeed.
Public School K-12 Educators: "Ask NOT what your annuity sales person can do for you, ask what you can do to be a Do-It-Yourselfer (DIY)."

Post Reply