What part of your investment philosophy was "Inspired by Jack Bogle"?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
User avatar
Rowan Oak
Posts: 277
Joined: Mon May 09, 2016 2:11 pm
Location: Yoknapatawpha

What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Rowan Oak » Sun Oct 07, 2018 9:17 am

For me, it's everything. My entire investment philosophy is based on Jack's "Little Book of Common Sense Investing" and the Bogleheads investment philosophy. After 20 years of investing and making many mistakes along the way I have embraced Simplicity. With each year that passes I become more confident in "the majesty of simplicity". I use The Two-Fund Portfolio (Vanguard Total Stock Market Index Fund (VTSAX) and Vanguard Total Bond Market Index Fund (VBTLX)), but I also consider the The Three-Fund Portfolio equally good for those that choose to invest in international stock index funds.

What part of your investment philosophy was "Inspired by Jack Bogle"?
Last edited by Rowan Oak on Sun Oct 07, 2018 11:10 am, edited 1 time in total.
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger

staythecourse
Posts: 6131
Joined: Mon Jan 03, 2011 9:40 am

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by staythecourse » Sun Oct 07, 2018 9:32 am

Pick low cost index funds and stay the course.

Also, paraphrasing one of his best lines (in my opinion): To be successful you just have to do a few things right and avoid any major mistakes. Great advice.

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

stan1
Posts: 6011
Joined: Mon Oct 08, 2007 4:35 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by stan1 » Sun Oct 07, 2018 9:33 am

For me actually it was very little. Authors like RIck Ferri and Larry Swedroe plus long term posters here like David Grabiner, Laura Dogu, retiredjg and yes even livesoft had more influence. Jack Bogle is a great American who made a huge contribution by making low cost investing and index funds in particular accessible to retail investors and I thank him for having the vision to be first and pull it off. For actionable personal investing advice I find the above posters to be more in touch with my realities.

Fallible
Posts: 6540
Joined: Fri Nov 27, 2009 4:44 pm
Contact:

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Fallible » Sun Oct 07, 2018 10:08 am

Initially, 31 years ago, I read about Jack Bogle and low-cost indexing and have been at it since. But I think I was already inspired to be a passive investor, probably a combination of nature and nurture, and just waiting for someone like Jack to come along and not only show the way, but clear the way for the small investor.
Bogleheads® wiki | Investing Advice Inspired by Jack Bogle

User avatar
LarryG
Posts: 290
Joined: Sun Mar 11, 2007 11:10 am

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by LarryG » Sun Oct 07, 2018 10:35 am

I have followed the “Bogle Philosophy” for 20 years.I also use the two fund portfolio with a small (5%) Midcap Index Fund component.
The withdrawals (RMD) are used to follow my desired asset allocation.
Simple and effective.
LarryG

livesoft
Posts: 62776
Joined: Thu Mar 01, 2007 8:00 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by livesoft » Sun Oct 07, 2018 10:46 am

We opened an account at Vanguard in 1982. And it was inspiring.
Wiki This signature message sponsored by sscritic: Learn to fish.

Ron Scott
Posts: 1090
Joined: Tue Apr 05, 2016 5:38 am

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Ron Scott » Sun Oct 07, 2018 11:22 am

When I was in my 20s, 30s and 40s the general BH philosophy as we know it would have seemed ridiculous to me. I would have seen it as a sad capitulation, a willingness to accept the average instead of doing what I saw as the American thing, living with significant risk, accepting that I might fail, working 70-hour weeks to succeed, throwing myself into the game with I all I had.

Within a couple years of retirement, having been lucky in the path I chose, the BH way appeared to be the right way to shore-up the gains and settle down. I left the game on my own terms and have a been-there-done-that attitude. No boring bizspeak broker with a $900 suit and an embarrassing monogram on the cuffs of his shirt was going to fleece me. I don’t need to gamble on “my own hunches” and take no pleasure in play money. No Bloomberg terminal. Age in bonds. Low fee wars are an unexpected blessing. Not paying a group of know-nothing stock pickers to “manage” active investments.

Good now, not then.
Retirement is a game best played by those prepared for more volatility in the future than has been seen in the past. The solution is not to predict investment losses but to prepare for them.

User avatar
Munir
Posts: 2466
Joined: Mon Feb 26, 2007 4:39 pm
Location: Oregon

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Munir » Sun Oct 07, 2018 11:31 am

100%- since the late seventies.

User avatar
watchnerd
Posts: 1432
Joined: Sat Mar 03, 2007 11:18 am
Location: Seattle, WA, USA

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by watchnerd » Sun Oct 07, 2018 11:42 am

0% by him as a person.

Nothing against him, but I came to indexing via the EMH / Fama-French / Ibbotson door.

I was using Vanguard ETFs (which Bogle seems to dislike) as worthy tools before I ever knew who Bogle was.
Tax Sheltered: 35% US Stock | 35% ex-US Stock | 30% TTM || Taxable: 35% US Stock | 35% ex-US Stock | 15% TTM | 15% Munis

Dottie57
Posts: 4674
Joined: Thu May 19, 2016 5:43 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Dottie57 » Sun Oct 07, 2018 11:50 am

I didn’t know of Mr. Bogle until 2016.

I have had Vanguard S&P 500 since 1997 in 401k. A 1970’s(?) book by Jane Bryant Quinn told me to look for low ER Iin a fund. And to have stock and bond funds. Dad had a few books which were persuasive about index funds. Kiplinger newletter (Dad subscribed) persuaded me investing was complicated - hence a few advisors. More index funds appeared in 401k and I started buying them.

Since Mr Bogle started index funds , he did inspire me, since I couldn’t have invested in them without him.
Last edited by Dottie57 on Sun Oct 07, 2018 11:57 am, edited 1 time in total.

2015
Posts: 2104
Joined: Mon Feb 10, 2014 2:32 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by 2015 » Sun Oct 07, 2018 11:53 am

Probably in its entirety. I've not been able to find anything outside the fields of personal finance, economics, or investing that conflicts with what Taylor Larimore has said. As individuals, Jack Bogle and Taylor Larimore are two individuals I could aspire to be like, although I have at least enough intellectual honesty to admit I could never come close to approximating their selflessness and ability to serve as examples.

I think I've made it sufficiently clear elsewhere I view much of the other stuff here, with a few exceptions, as overly debated nonsense based in theory as opposed to the reality of how people really behave.

Grt2bOutdoors
Posts: 19342
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Grt2bOutdoors » Sun Oct 07, 2018 12:00 pm

Keep costs low. You don’t need more than 5 funds to be diversified. Stay the course.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Grt2bOutdoors
Posts: 19342
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Grt2bOutdoors » Sun Oct 07, 2018 12:02 pm

livesoft wrote:
Sun Oct 07, 2018 10:46 am
We opened an account at Vanguard in 1982. And it was inspiring.
Back then there was no internet. You had to mail in your investment check with your handwritten application. Any questions - call or write.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

User avatar
watchnerd
Posts: 1432
Joined: Sat Mar 03, 2007 11:18 am
Location: Seattle, WA, USA

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by watchnerd » Sun Oct 07, 2018 12:14 pm

Grt2bOutdoors wrote:
Sun Oct 07, 2018 12:00 pm
Keep costs low. You don’t need more than 5 funds to be diversified. Stay the course.
I need 5?
Tax Sheltered: 35% US Stock | 35% ex-US Stock | 30% TTM || Taxable: 35% US Stock | 35% ex-US Stock | 15% TTM | 15% Munis

User avatar
GerryL
Posts: 1908
Joined: Fri Sep 20, 2013 11:40 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by GerryL » Sun Oct 07, 2018 2:45 pm

I was taught by my parents to live below my means and to pay myself first. When I finally looked into “investing in the stock market” I learned about the importance of keeping expenses low and started with a relatively inexpensive managed fund (Dodge & Cox). It wasn’t until some years later, after several years with Vanguard, that I got the indexing message and became confident with the philosophy of buying the whole market by relying on a few core funds.
When I met Jack Bogle at the annual conference two years ago, I thanked him for making it possible for me to say that I am gainfully unemployed.

livesoft
Posts: 62776
Joined: Thu Mar 01, 2007 8:00 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by livesoft » Sun Oct 07, 2018 2:51 pm

Grt2bOutdoors wrote:
Sun Oct 07, 2018 12:02 pm
livesoft wrote:
Sun Oct 07, 2018 10:46 am
We opened an account at Vanguard in 1982. And it was inspiring.
Back then there was no internet. You had to mail in your investment check with your handwritten application. Any questions - call or write.
Yes, and we still had a rotary dial phone, too.
Wiki This signature message sponsored by sscritic: Learn to fish.

User avatar
stemikger
Posts: 4916
Joined: Thu Apr 08, 2010 5:02 am

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by stemikger » Sun Oct 07, 2018 2:54 pm

Rowan Oak wrote:
Sun Oct 07, 2018 9:17 am
For me, it's everything. My entire investment philosophy is based on Jack's "Little Book of Common Sense Investing" and the Bogleheads investment philosophy. After 20 years of investing and making many mistakes along the way I have embraced Simplicity. With each year that passes I become more confident in "the majesty of simplicity". I use The Two-Fund Portfolio (Vanguard Total Stock Market Index Fund (VTSAX) and Vanguard Total Bond Market Index Fund (VBTLX)), but I also consider the The Three-Fund Portfolio equally good for those that choose to invest in international stock index funds.

What part of your investment philosophy was "Inspired by Jack Bogle"?
100%, but I go even a step further than you. I use the one fund approach. The Vanguard Balanced Index Fund which Jack has often praised as the ultimate in simplicity.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

Elysium
Posts: 1304
Joined: Mon Apr 02, 2007 6:22 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Elysium » Sun Oct 07, 2018 5:02 pm

Just two things:

1. Costs Matter
2. Stay the course

That is all there is to investing. Not many others are able to distill it down to this important message, as they go all over the place with EMH, MPT, Factors, Noncorrelation, Beta, this and that, and in the end they have no message at all worth following. Bogle is on message 100% of the time.

SoAnyway
Posts: 196
Joined: Tue Jul 31, 2018 11:49 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by SoAnyway » Sun Oct 07, 2018 6:34 pm

stan1 wrote:
Sun Oct 07, 2018 9:33 am
Jack Bogle is a great American who made a huge contribution by making low cost investing and index funds in particular accessible to retail investors and I thank him for having the vision to be first and pull it off.
+1. I especially thank him for structuring Vanguard to avoid conflicts of interest, i.e. structuring the Vanguard Group as a mutual company, owned by funds managed by the company, and therefore owned by its customers. This is in contrast to Fidelity (owned by the Johnson family and employees) and Schwab (publicly traded). BTW, that's not a slam on Fido or Schwab - I have accounts at both. It's just a fact - and one I take into account among other factors when deciding which firm to use for what as far as my investing needs go, and the level of trust I have in each. Jack Bogle has shown through his actions, not just his words - or perhaps more accurately, his inactions, i.e. what he could have done to enrich himself more, but deliberately CHOSE NOT TO - that he actually cared about finding a way for small investors to get a fair shake. SoAnyway...

Back to OP's question ("What part of your investment philosophy was 'Inspired by Jack Bogle'?"): Either very little or everything, dep. on how you view it. I've never read any of Jack Bogle's books, although I've read much about him, his philosophy and principles, and the history of Vanguard. I have nothing but admiration and respect.

I subscribed to investing in a diversified portfolio of low-cost index funds starting sometime in the 90s and have stayed the course. It has served me well. That's the extent of the part of my investment philosophy inspired by Jack Bogle. HOWEVER, I couldn't have done it without much helpful guidance from the folks at Vanguard, this forum and others of like mind. Like I said: Very little or everything, depending on how you choose to view it.

SoAnyway
Posts: 196
Joined: Tue Jul 31, 2018 11:49 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by SoAnyway » Sun Oct 07, 2018 7:08 pm

livesoft wrote:
Sun Oct 07, 2018 2:51 pm
Grt2bOutdoors wrote:
Sun Oct 07, 2018 12:02 pm
livesoft wrote:
Sun Oct 07, 2018 10:46 am
We opened an account at Vanguard in 1982. And it was inspiring.
Back then there was no internet. You had to mail in your investment check with your handwritten application. Any questions - call or write.
Yes, and we still had a rotary dial phone, too.
Thanks for the walk down memory lane, Grt2bOutdoors and livesoft. :happy
I came a bit later. I had a touch-tone phone then (woo hoo!) that I used to call Vanguard to request info about opening an account. The packet arrived a few days later via USPS. The internet was still years away, and even my little, then "cutting-edge", Motorola StarTac phone was a couple years later. (Oh, I thought I was SOO cool when I pulled that thing out to the envy of those who were still reaching into their pockets for dimes and quarters to use the pay phone....)

I vividly remember poring over the little booklet Vanguard sent me re. the various fund choices; painstakingly making my investment selection and filling out the paper application; writing the check (TWO THOUSAND DOLLARS - which was a LOT of money to me at the time); and with some trepidation dropping the envelope into the blue U.S. Postal Service box on the corner. All the while, I was praying that I was doing the right thing by taking that massive sum out of my money market checking account with its guaranteed return, lol....

Dandy
Posts: 5418
Joined: Sun Apr 25, 2010 7:42 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Dandy » Mon Oct 08, 2018 10:40 am

Use low cost, passive, diversified index funds. That advice was worth almost everything.

I didn't follow: stay the course no matter what (and neither did he). Or don't peek (and I'm guessing he looked at his investment statements at some time before he retired).

I got numerous help from this forum that I can't properly give credit to since I focused on the advice not the source. :oops:


In retirement I found Dr. Bernstein's idea of having 20 or more years of residual expenses in "safe" products extremely helpful in getting me comfortable with how to structure my portfolio in retirement. It gave me peace of mind during the long bull market and should be even more of a sleep aid in a down market.

SGM
Posts: 2747
Joined: Wed Mar 23, 2011 4:46 am

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by SGM » Mon Oct 08, 2018 11:00 am

Jack Bogle's unselfishness and dedication to the cause of lowering costs for the average investor is inspirational.

User avatar
bertilak
Posts: 6132
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by bertilak » Mon Oct 08, 2018 12:19 pm

stemikger wrote:
Sun Oct 07, 2018 2:54 pm
Rowan Oak wrote:
Sun Oct 07, 2018 9:17 am
For me, it's everything. My entire investment philosophy is based on Jack's "Little Book of Common Sense Investing" and the Bogleheads investment philosophy. After 20 years of investing and making many mistakes along the way I have embraced Simplicity. With each year that passes I become more confident in "the majesty of simplicity". I use The Two-Fund Portfolio (Vanguard Total Stock Market Index Fund (VTSAX) and Vanguard Total Bond Market Index Fund (VBTLX)), but I also consider the The Three-Fund Portfolio equally good for those that choose to invest in international stock index funds.

What part of your investment philosophy was "Inspired by Jack Bogle"?
100%, but I go even a step further than you. I use the one fund approach. The Vanguard Balanced Index Fund which Jack has often praised as the ultimate in simplicity.
And I also go one step further but in the other direction. Four funds: Stocks, Bonds, each split US and International. (I say international bonds is the fourth fund in my three-fund portfolio.) :happy
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker, the Cowboy Poet

dkturner
Posts: 1357
Joined: Sun Feb 25, 2007 7:58 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by dkturner » Mon Oct 08, 2018 12:26 pm

The importance of investing in low cost funds, whether active or index, and using very low turnover funds (primarily index funds) in taxable accounts.

User avatar
steve321
Posts: 248
Joined: Sat Sep 09, 2017 9:16 am
Location: Southampton, UK

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by steve321 » Mon Oct 08, 2018 12:30 pm

For me, keep costs low and don't get too precise about allocations when it comes to re-balancing.
Success does not bring happiness. In fact, happiness IS success. | 'There are only two tragedies in life: one is not getting what one wants, and the other is getting it.' Oscar Wilde

User avatar
Taylor Larimore
Advisory Board
Posts: 27530
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Taylor Larimore » Mon Oct 08, 2018 12:32 pm

Rowan Oak wrote:
Sun Oct 07, 2018 9:17 am
For me, it's everything. My entire investment philosophy is based on Jack's "Little Book of Common Sense Investing" and the Bogleheads investment philosophy. After 20 years of investing and making many mistakes along the way I have embraced Simplicity. With each year that passes I become more confident in "the majesty of simplicity". I use The Two-Fund Portfolio (Vanguard Total Stock Market Index Fund (VTSAX) and Vanguard Total Bond Market Index Fund (VBTLX)), but I also consider the The Three-Fund Portfolio equally good for those that choose to invest in international stock index funds.

What part of your investment philosophy was "Inspired by Jack Bogle"?
Rowan Oak:

Like you, nearly 100% of my investment philosophy was "Inspired by Jack Bogle"?

It has served us well.

I live in the house that Jack Built (actually a condo on Biscayne Bay).

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

Grt2bOutdoors
Posts: 19342
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Grt2bOutdoors » Mon Oct 08, 2018 6:53 pm

livesoft wrote:
Sun Oct 07, 2018 2:51 pm
Grt2bOutdoors wrote:
Sun Oct 07, 2018 12:02 pm
livesoft wrote:
Sun Oct 07, 2018 10:46 am
We opened an account at Vanguard in 1982. And it was inspiring.
Back then there was no internet. You had to mail in your investment check with your handwritten application. Any questions - call or write.
Yes, and we still had a rotary dial phone, too.
Wow! Let me guess - it's either black or white, the two most popular colors back then.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Wataru
Posts: 17
Joined: Sat Sep 15, 2018 8:17 pm

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Post by Wataru » Mon Oct 08, 2018 7:28 pm

Low cost, passive management, broad diversification, buy and hold! :D

Post Reply