- Investing Advice Inspired by John Bogle
(1929 - 2019)
Forum postsWelcome to the Bogleheads® wiki, a collaborative undertaking by members of the Bogleheads Community. This wiki is a reference resource for investors. Bogleheads emphasize starting early, living below one's means, regular saving, broad diversification, and sticking to one's investment plan.
If all this seems a bit overwhelming, relax and don't panic. A good place to begin is getting started
(or getting started for non-US investors
). Returning visitors may be interested in our new pages
For US investors:
For non-US investors:
An Investment policy statement (IPS) is a statement that defines general investment goals and objectives. It describes the strategies that will be used to meet these objectives and contains specific information on subjects such as asset allocation, risk tolerance, and liquidity requirements.
Consider the use of a simple investing plan (see below):
- For investors challenged by the complexity of an Investment Policy Statement
- When the investment objectives don't justify the effort needed to create an Investment Policy Statement (more...)
This week in financial history
- 1979 - The first modern leveraged buyout using high-yield junk bonds, a $381 million deal to take Houdaille Industries private, is completed by Kohlberg, Kravis, Roberts & Co. Source: George P. Baker and George David Smith, The New Financial Capitalists: Kohlberg Kravis Roberts and the Creation of Corporate Value (New York: Cambridge University Press, 1998), pp. 71.
- 1929 - The first trading session took place on the Luxembourg Stock Exchange. Source: Luxembourg Stock Exchange History
- 2010 - In a technical market disturbance known as the "flash crash", the Dow Jones Industrial Average suffered its worst intra-day point loss, dropping nearly 1,000 points before partially recovering. Source
- 1894 - Benjamin Graham, considered the father of value investing, and coauthor/author of classic investment texts, Security Analysis (1934) and The Intelligent Investor (1949) was born on May 9, 1894 in London, U.K Source:Benjamin Graham, Wikipedia
- 1972 - The final version of a study by Fisher Black and Myron Scholes introducing the Black-Scholes Option Pricing Formula was received by the Journal of Political Economy. This study specified the first successful options pricing formula (mathematics of option pricing, dynamic hedging strategies using options and other derivatives) and described the general framework for pricing derivative securities. The formula is one of most important mathematical tools in the modern theory of finance. Sources: Business history of Wall Street; The Pricing of Options and Corporate Liabilities. Journal of Political Economy, Vol. 86, p.637.
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