"Can you sum-up your investing philosophy in 10 words?"

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Lauren Vignec
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by Lauren Vignec » Mon Feb 20, 2012 12:56 pm

Keep investing simple and stay the course.

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ofcmetz
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by ofcmetz » Mon Feb 20, 2012 11:06 pm

Here is a SWAT saying,

Slow is smooth, smooth is fast.
Never underestimate the power of the force of low cost index funds.

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BHCadet
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by BHCadet » Tue Feb 21, 2012 1:58 am

Make money. Save money. Invest money. Diversify money. Spend money.

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Aptenodytes
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by Aptenodytes » Tue Feb 21, 2012 7:21 am

It is kind of weird how little investment content is in these philosophy statements. Statements about keeping expenses low dominate. It is as if people thought that saving money was all that mattered and how the savings were invested was irrelvant. Not what I would have expected in this forum.

The philosophy that governs my investment behavior (not my savings habits) is something like:

Take calculated risks based on solid research. Be consistent.

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DRiP Guy
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by DRiP Guy » Tue Feb 21, 2012 12:17 pm

Aptenodytes wrote:It is as if people thought that saving money was all that mattered and how the savings were invested was irrelvant. Not what I would have expected in this forum.
Or perhaps (and much more likely I think), the 'how the savings are invested' part is not so much irrelevant as it is more or less 'preordained' per Bogleheads philosophy for this group... *including* keeping an eye on costs and fees for buying that market basket of the world's production, since we know that those costs and fees are proven to be the biggest determinant of investment returns!

We each see everything through our own filters. For instance, your own investing philosophy: "Take calculated risks based on solid research. Be consistent." is probably a very fine, appropriate, and very workable philosophy for you, personally. However, it is (IMHO) most certainty NOT a Boglehead-like philosophy - 'solid research' as I read it implies some sort of analysis in order (I presume) to make trades into and out of ... individual stocks? ETFs? Sectors? The entire market?

And the 'calculated risks' clause certainly sounds more like betting (to me personally), than it does 'stay the course.'

So I would propose that maybe the 'non-Boglehead' bent you are perceiving is more a feature of your own stance than it is explicit in the posts that I have read.

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Aptenodytes
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by Aptenodytes » Tue Feb 21, 2012 12:41 pm

DRiP Guy wrote: We each see everything through our own filters. For instance, your own investing philosophy: "Take calculated risks based on solid research. Be consistent." is probably a very fine, appropriate, and very workable philosophy for you, personally. However, it is (IMHO) most certainty NOT a Boglehead-like philosophy - 'solid research' as I read it implies some sort of analysis in order (I presume) to make trades into and out of ... individual stocks? ETFs? Sectors? The entire market?

And the 'calculated risks' clause certainly sounds more like betting (to me personally), than it does 'stay the course.'

So I would propose that maybe the 'non-Boglehead' bent you are perceiving is more a feature of your own stance than it is explicit in the posts that I have read.
Interesting. Clearly boiling down to 10 words or less makes it hard to communicate.

By "risks" I meant investing in things other than cash, such as the stock and bond markets (I realize even cash has a risk, from inflation, so maybe this term doesn't add anything special).

By "calculated" risks I meant selecting investments carefully, not on whim or fancy or blind recommendations.

By "solid research" I meant analytically sound results that are both robust within the academic community and which make sense to me. That rules out everything you guessed I meant (I can't think of anything that counts as solid research that would guide you with respect to market timing, perhaps with the exception of a handful of momentum studies, and those would give only very loose guidance). "Solid research" is my 2-worded way of distilling the specific aspects of Boglehead philosophy that go beyond the basic "take calculated risks." Interesting that we see this so different -- for me the Bogle approach is compelling precisely because it is ground so firmly on solid research, yet you see it the other way around.

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DRiP Guy
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by DRiP Guy » Tue Feb 21, 2012 12:56 pm

Aptenodytes wrote:By "risks" I meant investing in things other than cash, such as the stock and bond markets

By "calculated" risks I meant selecting investments carefully, not on whim or fancy or blind recommendations.

By "solid research" I meant analytically sound results that are both robust within the academic community and which make sense to me... my 2-worded way of distilling the specific aspects of Boglehead philosophy that go beyond the basic "take calculated risks."

Interesting that we see this so different
Terrific reply! As you say, we are clearly at (innocent) cross-purposes in our communication!

For instance, I *also* find the Boglehead's method compelling strictly on it's scientificly-based/empirically-tested/data-supported/logical clarity. Yes, research would lead one to discover that result, but in the context of investing today, it seems to me that the term 'research' is more often misappropriated to mean 'making the case for one particular trade decision, stock pick, sector tilt, region bias, or other deviation from "just standing there"!


Similarly, with the term 'calculated risks'. I am not saying your use of it is wrong at all, but given the meaning that so many others apply to that phrase 'taking calculated risks,' I bet your own proper use is actually a minority application!

8-)

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Aptenodytes
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by Aptenodytes » Tue Feb 21, 2012 12:58 pm

Sorry, but there two other things I wanted to clarify:
DRiP Guy wrote: Or perhaps (and much more likely I think), the 'how the savings are invested' part is not so much irrelevant as it is more or less 'preordained' per Bogleheads philosophy for this group... *including* keeping an eye on costs and fees for buying that market basket of the world's production.
I am pretty certain that almost nobody on this board invests in a "market basket of the world's production" if by that you mean equities in proportion to world market capitalization. Instead they make judgments about what basket of assets make sense for them, using a variety of sober-minded calculations. In that sense how money is invested is not 'preordained.'
DRiP Guy wrote: And the 'calculated risks' clause certainly sounds more like betting (to me personally), than it does 'stay the course.'
"Staying the course" is a preeminent calculated risk -- that's why it is hard to do with discipline. If staying the course brought nothing but certain reward at each step of the journey, the majority of people would do it and we wouldn't bother having a forum to talk about it. It would be like breathing air. Instead, it is difficult because it entails risk, and we have to impose the strength of our minds to guide us through the risky waters.

My guess is we agree on all these things when communicated in hundreds of words instead of 10 words.

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Clearly_Irrational
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by Clearly_Irrational » Tue Feb 21, 2012 1:05 pm

Aptenodytes wrote:My guess is we agree on all these things when communicated in hundreds of words instead of 10 words.
Agreed, stating my full philosophy would probably take at least a page or two. (and that's just to say it, if you want it explained I'd need a lot more space)

DoWahDaddy
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by DoWahDaddy » Tue Feb 21, 2012 2:07 pm

The true pleasures in life are few, and generally cheap.
Me: 75/25 stocks/bonds | Son: 45/45/10 matchbox/hotwheels/thomas & friends

PreserveCapital
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by PreserveCapital » Tue Feb 21, 2012 2:10 pm

"Preserve Capital."

riskonoff
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by riskonoff » Tue Feb 21, 2012 2:19 pm

Savers need to invest aggresively in bear markets.

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mickeyd
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by mickeyd » Tue Feb 21, 2012 6:38 pm

Stay the course. Stay the course. Stay the course. Stay
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

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DRiP Guy
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by DRiP Guy » Tue Feb 21, 2012 8:05 pm

mickeyd wrote:Stay the course. Stay the course. Stay the course. Stay
I vote for this one!

:lol:

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CaliJim
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by CaliJim » Tue Feb 21, 2012 8:06 pm

50% twsm, 30% tbm, 20% tips

rbowling
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by rbowling » Tue Feb 21, 2012 10:26 pm

Almost nothing turns out as expected. Diversify.

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desertbandit442
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by desertbandit442 » Wed Feb 22, 2012 8:48 am

INDEX investing, annual checkup, and let it ride baby ride!

Grt2bOutdoors
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by Grt2bOutdoors » Wed Feb 22, 2012 8:54 am

Watch your expenses, the rest will take care of itself.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Fletch
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by Fletch » Wed Feb 22, 2012 9:21 am

BBH:
Buy high, sell low.

ABH:
Low cost, low risk.
“Meaningless! Meaningless!” says the Teacher. Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless.

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Kathleen Ryan
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by Kathleen Ryan » Thu Feb 23, 2012 8:28 am

Thank you Taylor for asking,



I use Jack Bogle's low cost, diversified index funds.
Best wishes, | Kathleen

Sam314159
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Re: "Can you sum-up your investing philosophy in 10 words?"

Post by Sam314159 » Thu Feb 23, 2012 9:43 am

"Buy whatever fund is currently crappy."

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