[favorite] Boglehead quotes

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Rowan Oak
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Re: [favorite] Boglehead quotes

Post by Rowan Oak »

Rick Ferri wrote: Fri Feb 21, 2020 10:33 am It is worth reminding readers that strategy differs from philosophy. We all have the same investment philosophy. We implement the philosophy through strategy, and that is personal and unique to each investor.

There are three main components to investment success:

Philosophy: What is your belief about investing? What do you believe is in your best interest? We can break this down into two choices: active and passive. Either you’re going to attempt to outperform markets through individual investment selection or market timing, or you're going to be passive and accept market returns using a prudent long-term asset allocation.

Strategy: Once you come to terms with your philosophy, you’re then in a position to develop a portfolio strategy for your unique needs. How do you decide your asset allocation? How do you decide what funds to use? How do you implement this strategy? What custodians do you use? Do you use index funds, ETFs or both? There are many individual decisions to make.

Discipline: You have a philosophy for creating your unique portfolio strategy, now you have to implement and stay invested. How does your client maintain discipline? Discipline is the key to long-term success. The power of compounding.

I can talk to a whole room full of index fund investors who enthusiastically embrace a passive philosophy, but when I ask how many in the room have the exact same portfolio as another person in the room, no one will raise their hand.

Philosophy is universal: Strategy is personal: Discipline is mandatory. They all work together for investment success.

Rick Ferri
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
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grabiner
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Re: [favorite] Boglehead quotes

Post by grabiner »

Rowan Oak wrote: Tue Dec 08, 2020 6:14 pm
Rick Ferri wrote: Fri Feb 21, 2020 10:33 am I can talk to a whole room full of index fund investors who enthusiastically embrace a passive philosophy, but when I ask how many in the room have the exact same portfolio as another person in the room, no one will raise their hand.
This relates to one of my regular quotes, which I give when I post my asset allocation. "I never advise that anyone match my portfolio. If a portfolio like mine is right for you, then you know enough to ignore that advice."
Wiki David Grabiner
random_walker_77
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Re: [favorite] Boglehead quotes

Post by random_walker_77 »

A hat tip to thx1138 who pointed me to this quote:
White Coat Investor wrote: Wed Feb 05, 2020 11:22 am Beginning investors have a hard time staying the course at market lows.
Intermediate investors have a hard time staying the course at market highs.
Advanced investors stay the course.
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bertilak
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Re: [favorite] Boglehead quotes

Post by bertilak »

random_walker_77 wrote: Fri Jan 01, 2021 12:44 pm A hat tip to thx1138 who pointed me to this quote:
White Coat Investor wrote: Wed Feb 05, 2020 11:22 am Beginning investors have a hard time staying the course at market lows.
Intermediate investors have a hard time staying the course at market highs.
Advanced investors stay the course.
I like that one!
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
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Re: [favorite] Boglehead quotes

Post by birdog »

grabiner wrote: Tue Jan 14, 2020 10:35 pm From Value of Active and Ongoing Reading of the Bogleheads Forums:

William Bernstein (Dr.) likes to say that a portfolio is a like a bar of soap--the more it's handled, the less there is!
Love it! I may borrow that one.
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Re: [favorite] Boglehead quotes

Post by abuss368 »

Taylor’s! “Stocks let us eat well. Bonds let us sleep well”.

Tony
John C. Bogle: “Simplicity is the master key to financial success."
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grabiner
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Re: [favorite] Boglehead quotes

Post by grabiner »

From How long would you back a losing horse, to Stay The Course?:
wolf359 wrote: Sat Mar 06, 2021 10:08 pm However, if you're happy with the performance of every single component of your portfolio, then you probably aren't properly diversified. The point of diversification is that some parts will zig while others are zagging.
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Re: [favorite] Boglehead quotes

Post by lurkman »

“It is not wise to lose principal by chasing interest.”

—A friend of mine, after having his head handed to him in margin calls amidst heavy losses in the late 1990s. He attributed the quote to an ancient Tamil poet who lived sometime around 5th century CE.
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Re: [favorite] Boglehead quotes

Post by LadyGeek »

From: Subject: U.S. stocks in free fall (inner-most quote removed)
minesweep wrote: Wed May 12, 2021 4:28 pm
Visitor76 wrote: Wed May 12, 2021 1:51 pm
watchnerd wrote: Wed May 12, 2021 12:13 pm ...
"Sell in May, go away"....

Who knows?
Exactly! Is anyone really surprised that it's May and we're having a sell-off. :oops:
A limerick
Sell in May and go away
A false adage that some convey
Getting out and getting in
To Bogleheads, a sin
It's time in the market, do not stray
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