Jack Bogle - Two Fund Portfolio

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DB2
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Re: Jack Bogle - Two Fund Portfolio

Post by DB2 »

Paul Merriman did a recent interview with Larry Swedroe (see Youtube). Larry pointed out how the debt-to-GDP ratio that the U.S. is in, based on research and history, really slows economic growth and there is no change in site. Of course, we can look at Japan's even worse debt to GDP and see how poorly their stock market has performed over the last 30 years. This is one reason, among others, why I am not going to get "stuck" with 100% equities or near that in any country including U.S. And there has been plenty of times where International outperformed the U.S. even when the U.S. was in a much better fiscal situation. This should be a very concerning issue for a biased U.S. investor.
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Re: Jack Bogle - Two Fund Portfolio

Post by bgf »

tomd37 wrote: Tue May 11, 2021 9:56 pm My equity percentage is 40%, but even in earlier years when it was 60% I still felt the same way as to international diversification. Each of us has their own feelings on the subject and some of us don't want to be "hounded" by others based on their personal feelings. Even Vanguard years ago recommended only 20% for international diversification, but that was their opinion.
Personal feelings? This entire thread is based on personal feelings; they just happen to confirm your own, so you're OK with it.

Vineviz's posts on this forum, by contrast, are some of the most data supported, researched posts of anyone here... there are a handful of posters here that provide the gross majority of the benefits of this forum. Imo, vineviz is one of them.
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midareff
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Re: Jack Bogle - Two Fund Portfolio

Post by midareff »

DB2 wrote: Tue May 11, 2021 2:48 pm
abuss368 wrote: Mon May 10, 2021 6:58 pm
Northern Flicker wrote: Mon May 10, 2021 1:33 pm I thus would challenge Tony's assertion that people are moving towards his line of thinking on this. Quite the opposite is what I observe to have been happening.
I am not so sure about that. Over the past couple of years, there appears to be a lot of posts expressing frustration and abandoning international stocks on the forum. Perhaps motivated by US outperformance.

Tony
I see it more as being generational. Younger investors on this forum seem very open to international where as older investors less so and in some cases dumping or minimizing it.

Institutions (Vanguard, etc.) absolutely moving more into international.
Do you have some age study for this?
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Re: Jack Bogle - Two Fund Portfolio

Post by midareff »

mikejuss wrote: Sun May 09, 2021 3:00 pm
abuss368 wrote: Sun May 09, 2021 2:34 pm
vineviz wrote: Sun May 09, 2021 2:01 pmI see no reason to hold a dedicated REIT fund.
Vince -

What do you base that on? I thoughts REITs have a lot fo overlap with small cap funds?

Tony
The great Taylor Larimore recently provided a link to this table of investment returns by asset class. To my mind, it makes a pretty strong case for holding REITs, as they are consistently among the top three performers. I'm personally considering doing so.
Let's count them up Mike.... #1 4 times, #2 2 times, #3 3 times, #4 2 times, middle rung 2 times, 4th from bottom 2 times, 3rd from bottom 2 times, 2nd from bottom 1 times, next to bottom 1 time and bottom 2 times.

So, if you want to fly with the winners than seems you might not like international.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Bogleheads -

Excellent advice from our mentor Jack Bogle.

Rules of investing.

Investors would be wise to follow.

https://www.fool.com/retirement/2020/03 ... le-th.aspx

Tony
John C. Bogle: “Simplicity is the master key to financial success."
Da5id
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Re: Jack Bogle - Two Fund Portfolio

Post by Da5id »

abuss368 wrote: Thu May 13, 2021 8:56 am Bogleheads -

Excellent advice from our mentor Jack Bogle.

Rules of investing.

Investors would be wise to follow.

https://www.fool.com/retirement/2020/03 ... le-th.aspx

Tony
Some particularly valuable points worth considering:
Owning the stock market over the long term is a winner's game, but attempting to beat the market is a loser's game.

Buying funds based purely on their past performance is one of the stupidest things an investor can do.

The two greatest enemies of the equity fund investor are expenses and emotions.

Don't look for the needle in the haystack. Just buy the haystack!
In summary, buy a mix of US and international. Don't let emotions, recency bias based on past performance, or an attempt to beat the market lead you into buying US only.
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Re: Jack Bogle - Two Fund Portfolio

Post by ruralavalon »

Da5id wrote: Thu May 13, 2021 9:10 am
abuss368 wrote: Thu May 13, 2021 8:56 am Bogleheads -

Excellent advice from our mentor Jack Bogle.

Rules of investing.

Investors would be wise to follow.

https://www.fool.com/retirement/2020/03 ... le-th.aspx

Tony
Some particularly valuable points worth considering:
Owning the stock market over the long term is a winner's game, but attempting to beat the market is a loser's game.

Buying funds based purely on their past performance is one of the stupidest things an investor can do.

The two greatest enemies of the equity fund investor are expenses and emotions.

Don't look for the needle in the haystack. Just buy the haystack!
In summary, buy a mix of US and international. Don't let emotions, recency bias based on past performance, or an attempt to beat the market lead you into buying US only.
You have seen in the article what you want to see?

The article did not mention international investing at all. The only funds given as examples of "owning the stock market" or "just buy the haystack" are S&P 500 index funds and Vanguard Total Stock Market ETF (VTI), both U.S. only stock index funds.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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Re: Jack Bogle - Two Fund Portfolio

Post by Da5id »

ruralavalon wrote: Thu May 13, 2021 9:43 am
Da5id wrote: Thu May 13, 2021 9:10 am Some particularly valuable points worth considering:
Owning the stock market over the long term is a winner's game, but attempting to beat the market is a loser's game.

Buying funds based purely on their past performance is one of the stupidest things an investor can do.

The two greatest enemies of the equity fund investor are expenses and emotions.

Don't look for the needle in the haystack. Just buy the haystack!
In summary, buy a mix of US and international. Don't let emotions, recency bias based on past performance, or an attempt to beat the market lead you into buying US only.
You have seen in the article what you want to see?

The article did not mention international investing at all. The only funds given as examples of owning the stock market are S&P 500 and Vanguard Total Stock Market ETF (VTI), both U.S. stock funds.
My point, and I did have one, was that a number the principles stated are in odd conflict with the "buy the US stocks only" advice. Particularly now that US has had a period of higher returns the "emotions" and "past performance" ones are apropos, but at any point the haystack and the beating the market ones. I'm obviously not a fan of the "define the haystack to be half the haystack because reasons" notion.

And, mind you, everyone sees what they want to see to some degree. Confirmation bias is a powerful force. Obvious in those who disagree with our opinions, less obvious in ourselves.
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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore »

Tony:

I wish I had read that article when I started investing.

Thank you.
Taylor
Jack Bogle's Words of Wisdom: Successful investing involves doing a few things right and avoiding serious mistakes.
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Jack Bogle - Two Fund Portfolio

Post by DSBH »

Da5id wrote: Thu May 13, 2021 9:10 am ...

Buying funds based purely on their past performance is one of the stupidest things an investor can do.
I think that in that statement the reference to "funds" means actively managed funds, but I could be wrong (nothing new).
Don't look for the needle in the haystack. Just buy the haystack!
I took it that on average it's better to buy an index fund instead of individual stock picking, but I could be wrong (nothing new).
In summary, buy a mix of US and international. Don't let emotions, recency bias based on past performance, or an attempt to beat the market lead you into buying US only.

My point, and I did have one, was that a number the principles stated are in odd conflict with the "buy the US stocks only" advice. Particularly now that US has had a period of higher returns the "emotions" and "past performance" ones are apropos, but at any point the haystack and the beating the market ones. I'm obviously not a fan of the "define the haystack to be half the haystack because reasons" notion.

And, mind you, everyone sees what they want to see to some degree. Confirmation bias is a powerful force. Obvious in those who disagree with our opinions, less obvious in ourselves.
+1 on the last statement.
John C. Bogle: "Never confuse genius with luck and a bull market".
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Re: Jack Bogle - Two Fund Portfolio

Post by Da5id »

DSBH wrote: Thu May 13, 2021 10:18 am
Da5id wrote: Thu May 13, 2021 9:10 am ...

Buying funds based purely on their past performance is one of the stupidest things an investor can do.
I think that in that statement the reference to "funds" means actively managed funds, but I could be wrong (nothing new).
Don't look for the needle in the haystack. Just buy the haystack!
I took it that on average it's better to buy an index fund instead of individual stock picking, but I could be wrong (nothing new).
I think those are both somewhat reasonable interpretations you have. But I think if one considers the asset class to be publicly traded equities, that would logically include the 50% market that is the rest of the world. By the logic you have above, it would be reasonable not just to invest in the US only, but to invest in sector index funds. If one has a look at https://novelinvestor.com/sector-performance/ one could imagine picking winners and losers and investing only in the past winners. It would be investing in non actively managed index funds. But, to me, it would be violating the rules quoted, both in terms of the "haystack" and the "past performance". I feel the same way about the US vs Int'l choice, YMMV.
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Re: Jack Bogle - Two Fund Portfolio

Post by Nathan Drake »

Taylor Larimore wrote: Thu May 13, 2021 9:59 am Tony:

I wish I had read that article when I started investing.

Thank you.
Taylor
Jack Bogle's Words of Wisdom: Successful investing involves doing a few things right and avoiding serious mistakes.
And I wish I only invested in Apple, Amazon, and Tesla

Lots of wishes when hindsight is 20/20

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Nathan Drake wrote: Thu May 13, 2021 11:26 am
Taylor Larimore wrote: Thu May 13, 2021 9:59 am Tony:

I wish I had read that article when I started investing.

Thank you.
Taylor
Jack Bogle's Words of Wisdom: Successful investing involves doing a few things right and avoiding serious mistakes.
And I wish I only invested in Apple, Amazon, and Tesla

Lots of wishes when hindsight is 20/20

The future is hazy
I invested in Apple a while back 😆 before moving to low cost index funds.

Tony
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by DSBH »

Da5id wrote: Thu May 13, 2021 10:56 am
DSBH wrote: Thu May 13, 2021 10:18 am
Da5id wrote: Thu May 13, 2021 9:10 am ...

Buying funds based purely on their past performance is one of the stupidest things an investor can do.
I think that in that statement the reference to "funds" means actively managed funds, but I could be wrong (nothing new).
Don't look for the needle in the haystack. Just buy the haystack!
I took it that on average it's better to buy an index fund instead of individual stock picking, but I could be wrong (nothing new).
I think those are both somewhat reasonable interpretations you have. But I think if one considers the asset class to be publicly traded equities, that would logically include the 50% market that is the rest of the world. By the logic you have above, it would be reasonable not just to invest in the US only, but to invest in sector index funds ...
By my above interpretation, in the long run on average it's better to buy a sector index fund instead of individual sector stock picking.

I recommended DD to select the Fidelity Freedom Index 2040 for her 401k so I am on board with investing in the ex-US world. And I think it's OK to invest in US (or any country specific) equity only, as long as one has some (hopefully decent) understanding on the risks s/he chooses. Also, if one recommends someone to invest in a country/sector/something specific, I think the specific risks should be explained as well.
John C. Bogle: "Never confuse genius with luck and a bull market".
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Re: Jack Bogle - Two Fund Portfolio

Post by Da5id »

DSBH wrote: Thu May 13, 2021 11:58 am By my above interpretation, in the long run on average it's better to buy a sector index fund instead of individual sector stock picking.

I recommended DD to select the Fidelity Freedom Index 2040 for her 401k so I am on board with investing in the ex-US world. And I think it's OK to invest in US (or any country specific) equity only, as long as one has some (hopefully decent) understanding on the risks s/he chooses. Also, if one recommends someone to invest in a country/sector/something specific, I think the specific risks should be explained as well.
I guess I view picking sectors as akin to picking individual stocks. It presumes a better than market knowledge of relative valuations of sectors compared to risks/rewards, just as picking individual stocks does.
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Re: Jack Bogle - Two Fund Portfolio

Post by Northern Flicker »

ruralavalon wrote: Thu May 13, 2021 9:43 am You have seen in the article what you want to see?

The article did not mention international investing at all. The only funds given as examples of "owning the stock market" or "just buy the haystack" are S&P 500 index funds and Vanguard Total Stock Market ETF (VTI), both U.S. only stock index funds.
Actually, the article used tracking the US market with an index fund as one example of investing in a broad market index fund:
When you invest in a broad-market index fund, such as one that tracks the whole U.S. stock market, as the ultra-low-fee Vanguard Total Stock Market ETF (VTI) does, it lets you skip looking for the most promising stocks among thousands -- because you just buy into all the thousands.
Nothing in the article suggested other markets should not be tracked with a broad market index fund. VXUS, VEA, and VWO are other examples of broad-market index funds.
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Re: Jack Bogle - Two Fund Portfolio

Post by ruralavalon »

Da5id wrote: Thu May 13, 2021 9:52 am
ruralavalon wrote: Thu May 13, 2021 9:43 am
Da5id wrote: Thu May 13, 2021 9:10 am Some particularly valuable points worth considering:
Owning the stock market over the long term is a winner's game, but attempting to beat the market is a loser's game.

Buying funds based purely on their past performance is one of the stupidest things an investor can do.

The two greatest enemies of the equity fund investor are expenses and emotions.

Don't look for the needle in the haystack. Just buy the haystack!
In summary, buy a mix of US and international. Don't let emotions, recency bias based on past performance, or an attempt to beat the market lead you into buying US only.
You have seen in the article what you want to see?

The article did not mention international investing at all. The only funds given as examples of owning the stock market are S&P 500 and Vanguard Total Stock Market ETF (VTI), both U.S. stock funds.
My point, and I did have one, was that a number the principles stated are in odd conflict with the "buy the US stocks only" advice. Particularly now that US has had a period of higher returns the "emotions" and "past performance" ones are apropos, but at any point the haystack and the beating the market ones. I'm obviously not a fan of the "define the haystack to be half the haystack because reasons" notion.

And, mind you, everyone sees what they want to see to some degree. Confirmation bias is a powerful force. Obvious in those who disagree with our opinions, less obvious in ourselves.
I have an allocation to international stocks using Vanguard Total International Stock Index Fund (VTIAX), but don't believe that U.S. only investing is unreasonable nor is it based only on recency bias and performance chasing as some have argued.

I do see tons of confirmation bias in all of the arguments made.

I think the heat of argument is in inverse proportion to the importance of the issue. In my opinion the far more important issues are contribution rate and equity/fixed income allocation.

The heat of the arguments may be because of scarcity of actual evidence. Instead of evidence we see a lot of argument about slogans like buying haystacks.

The correlation between U.S. and international stocks has been high, the correlation has been increasing and the diversification benefit has been modest. In my opinion there is no clear evidence for or against any specific weight for international stock allocation.

Vanguard paper (March 2012), "Considerations for investing in non-U.S. equities" available as an archived pdf, stated that historically allocating 20% of an equity portfolio to non-U.S. stocks would have captured about 84% of the maximum possible diversification benefit, and allocating 30% of an equity portfolio to non-U.S. stocks would have captured about 99% of the maximum possible diversification benefit (p. 6). Their graph depicting volatility versus international stock allocation has a very flat shallow curve between 20-50%, indicating to me that historically it made little difference where the investor was in that range (Fig. 3, p. 5).

Vanguard paper (February, 2019), "Global equity investing: The benefits of diversification and sizing your allocation" pdf link. While the United States had the lowest volatility of any individual country examined, its volatility was slightly [emphasis added] higher than that of the global market index (p.3). Figure 3 describes the diversification benefit. For U.S. investors volatility begins to rise with international allocations over 40%, the curve is relatively shallow and flat in the range 20-50% (Fig. 3, p.5) (indicating to me it made little difference where the investor was in that range). (Unlike earlier Vanguard papers, March 2012 and February 2014, they do not explicitly state how much of the diversification benefit is captured at various allocations like 20%, 30% and 40%) Correlations between returns of stocks in the United States and those outside the United States have increased significantly, currently about 0.80 (p.6). The correlation is still about 0.80.

"In determining how much to allocate between domestic and international equities, a helpful starting point for investors is global market-capitalization weight. In practice, many investors will consider an allocation below this starting point based on their sensitivity to a number of considerations, including volatility reduction, implementation costs, taxes, regulation, and their own preferences" (p. 10). I don't believe that those other considerations are illegitimate or unworthy of weight.
Last edited by ruralavalon on Thu May 13, 2021 3:01 pm, edited 3 times in total.
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Re: Jack Bogle - Two Fund Portfolio

Post by vineviz »

ruralavalon wrote: Thu May 13, 2021 2:45 pm
The heat of the arguments may be because of scarcity of actual evidence. Instead of evidence we see a lot of argument about slogans like buying haystacks.
There is no scarcity of evidence. We have monumental amounts of evidence about the behavior of markets and the behavior of investors.

Decision making under conditions of uncertainty is hard not because we lack a framework, but because the human brain seems to possess an almost limitless capacity for abandoning that framework when it produces a result which is emotionally uncomfortable.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch
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Re: Jack Bogle - Two Fund Portfolio

Post by Da5id »

ruralavalon wrote: Thu May 13, 2021 2:45 pm I think the heat of argument is in inverse proportion to the importance of the issue. In my opinion the far more important issues are contribution rate and equity/fixed income allocation.

The heat of the arguments may be because of scarcity of actual evidence. Instead of evidence we see a lot of argument about slogans like buying haystacks.
I think slogans are trite on the one hand. Yet they encapsulate ideas that are very important to success. Diversify. Control costs. Don't try and market time. Don't change your plans based on the emotions of the day or the latest article you read.

Much of what you say seems reasonable to me. And I agree equity/fixed is a bigger factor (as is savings for those still in that phase). As to the heat of the arguments, well...

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Re: Jack Bogle - Two Fund Portfolio

Post by ruralavalon »

Da5id wrote: Thu May 13, 2021 3:12 pm
ruralavalon wrote: Thu May 13, 2021 2:45 pm I think the heat of argument is in inverse proportion to the importance of the issue. In my opinion the far more important issues are contribution rate and equity/fixed income allocation.

The heat of the arguments may be because of scarcity of actual evidence. Instead of evidence we see a lot of argument about slogans like buying haystacks.
I think slogans are trite on the one hand. Yet they encapsulate ideas that are very important to success. Diversify. Control costs. Don't try and market time. Don't change your plans based on the emotions of the day or the latest article you read.

Much of what you say seems reasonable to me. And I agree equity/fixed is a bigger factor (as is savings for those still in that phase). As to the heat of the arguments, well...

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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore »

ruralavalon:

I admire your posts.

Thank you.
Taylor
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Hi Bogleheads -

An excellent article from Morningstar regarding our mentor, Jack Bogle’s view on international stocks.

“Bogle had a point on International Stocks”

https://www.morningstar.com/articles/97 ... nal-stocks

Enjoy!
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by Nathan Drake »

abuss368 wrote: Thu May 13, 2021 7:53 pm Hi Bogleheads -

An excellent article from Morningstar regarding our mentor, Jack Bogle’s view on international stocks.

“Bogle had a point on International Stocks”

https://www.morningstar.com/articles/97 ... nal-stocks

Enjoy!
Tony
Cherry picked, the article
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Re: Jack Bogle - Two Fund Portfolio

Post by goonie »

abuss368 wrote: Thu May 13, 2021 7:53 pm Hi Bogleheads -

An excellent article from Morningstar regarding our mentor, Jack Bogle’s view on international stocks.

“Bogle had a point on International Stocks”

https://www.morningstar.com/articles/97 ... nal-stocks

Enjoy!
Tony

You linked to that same article in this same thread a year ago.

viewtopic.php?p=5175124#p5175124
abuss368 wrote: Fri Apr 10, 2020 12:26 pm Bogleheads -

I found this article very interesting and insightful:

Bogle Had a Point on International Stocks

Vanguard's founder didn't see the need for them, and the markets haven't shown reason to suggest he was wrong.


The link to Morningstar: https://www.morningstar.com/articles/97 ... nal-stocks

This was my response...

viewtopic.php?p=5177177#p5177177
goonie wrote: Sat Apr 11, 2020 9:53 am
The author says it himself in his first sentence of his second paragraph. "Any idiot can argue from history by looking backwards for numbers to support a thesis."

Yet that's exactly what he does. He picks a few funds covering a few different (and somewhat particular) segments of the market, compares their results over the most recent 20 year period, and acts like he's done a thorough comparison of US vs International.
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Re: Jack Bogle - Two Fund Portfolio

Post by Northern Flicker »

abuss368 wrote: Thu May 13, 2021 7:53 pm Hi Bogleheads -

An excellent article from Morningstar regarding our mentor, Jack Bogle’s view on international stocks.

“Bogle had a point on International Stocks”

https://www.morningstar.com/articles/97 ... nal-stocks

Enjoy!
Tony
I included non-US equities in my retirement portfolio starting in 2001. I was 70% stocks at that time. Because I used a glide path, the portfolio was more stock-heavy in the years when US stocks underperformed. As a result, int'l equity diversification has improved my overall return slightly despite the US overperformance since 2008.
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

Northern Flicker wrote: Fri May 14, 2021 12:09 pm
abuss368 wrote: Thu May 13, 2021 7:53 pm Hi Bogleheads -

An excellent article from Morningstar regarding our mentor, Jack Bogle’s view on international stocks.

“Bogle had a point on International Stocks”

https://www.morningstar.com/articles/97 ... nal-stocks

Enjoy!
Tony
I included non-US equities in my retirement portfolio starting in 2001. I was 70% stocks at that time. Because I used a glide path, the portfolio was more stock-heavy in the years when US stocks underperformed. As a result, int'l equity diversification has improved my overall return slightly despite the US overperformance since 2008.
Wait! Hold on! You mean that over a couple of decades, international diversification helped your portfolio, despite its recent underperformance?
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Re: Jack Bogle - Two Fund Portfolio

Post by DB2 »

The world and the U.S. is changing rapidly and looking a lot differently than during Mr. Bogle's years.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Triple digit golfer wrote: Fri May 14, 2021 12:11 pm
Northern Flicker wrote: Fri May 14, 2021 12:09 pm
abuss368 wrote: Thu May 13, 2021 7:53 pm Hi Bogleheads -

An excellent article from Morningstar regarding our mentor, Jack Bogle’s view on international stocks.

“Bogle had a point on International Stocks”

https://www.morningstar.com/articles/97 ... nal-stocks

Enjoy!
Tony
I included non-US equities in my retirement portfolio starting in 2001. I was 70% stocks at that time. Because I used a glide path, the portfolio was more stock-heavy in the years when US stocks underperformed. As a result, int'l equity diversification has improved my overall return slightly despite the US overperformance since 2008.
Wait! Hold on! You mean that over a couple of decades, international diversification helped your portfolio, despite its recent underperformance?
Cherry picking. :twisted:

If the starting point was 2009, different story.
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Re: Jack Bogle - Two Fund Portfolio

Post by etherlinkage »

yogesh wrote: Sat Dec 28, 2019 9:51 pm
FrugalInvestor wrote: Thu Dec 26, 2019 8:24 pm I like the idea of a single balanced fund but if a significant portion of your portfolio is taxable I would think twice about it. Balanced funds are not particularly tax efficient and reduce flexibility. Flexibility is very important because individual situations and tax policy change over time.
VTMFX ia balanced fund, tax efficient and matches to Buffet & Bogle 2-fund advice US Stocks + US Bonds
You can put things on auto-pilot by choosing VTMFX in taxable and Lifestrategy/TargetRetirement in 401K/IRA.
Signature is what I have been following since last 5 years and haven't rebalanced
I wasn't aware of VTMFX. Thanks for pointing that out. It looks like a nice place to park after-tax contributions.
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Re: Jack Bogle - Two Fund Portfolio

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I removed a few off-topic posts. As a reminder, see: General Etiquette
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Bogleheads -

An interesting article regarding bonds by our mentor Jack Bogle. May be fitting with today’s low interest rate environment.

https://finance.yahoo.com/news/bogle-ti ... 27469.html

Enjoy!
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by ruud »

abuss368 wrote: Fri May 14, 2021 2:20 pm An interesting article regarding bonds by our mentor Jack Bogle. May be fitting with today’s low interest rate environment.

https://finance.yahoo.com/news/bogle-ti ... 27469.html
4.5 years after the publication of that article, Vanguard did start a Total Corporate Bond fund, but only in ETF form: VTC.
.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

etherlinkage wrote: Fri May 14, 2021 1:24 pm
yogesh wrote: Sat Dec 28, 2019 9:51 pm
FrugalInvestor wrote: Thu Dec 26, 2019 8:24 pm I like the idea of a single balanced fund but if a significant portion of your portfolio is taxable I would think twice about it. Balanced funds are not particularly tax efficient and reduce flexibility. Flexibility is very important because individual situations and tax policy change over time.
VTMFX ia balanced fund, tax efficient and matches to Buffet & Bogle 2-fund advice US Stocks + US Bonds
You can put things on auto-pilot by choosing VTMFX in taxable and Lifestrategy/TargetRetirement in 401K/IRA.
Signature is what I have been following since last 5 years and haven't rebalanced
I wasn't aware of VTMFX. Thanks for pointing that out. It looks like a nice place to park after-tax contributions.
The downsides are if you want to change the AA or decide you don't want/need muni bonds anymore.
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Re: Jack Bogle - Two Fund Portfolio

Post by Northern Flicker »

anon_investor wrote: Fri May 14, 2021 1:21 pm
Triple digit golfer wrote: Fri May 14, 2021 12:11 pm
Northern Flicker wrote: Fri May 14, 2021 12:09 pm
abuss368 wrote: Thu May 13, 2021 7:53 pm Hi Bogleheads -

An excellent article from Morningstar regarding our mentor, Jack Bogle’s view on international stocks.

“Bogle had a point on International Stocks”

https://www.morningstar.com/articles/97 ... nal-stocks

Enjoy!
Tony
I included non-US equities in my retirement portfolio starting in 2001. I was 70% stocks at that time. Because I used a glide path, the portfolio was more stock-heavy in the years when US stocks underperformed. As a result, int'l equity diversification has improved my overall return slightly despite the US overperformance since 2008.
Wait! Hold on! You mean that over a couple of decades, international diversification helped your portfolio, despite its recent underperformance?
Cherry picking. :twisted:

If the starting point was 2009, different story.
It's not cherry picking if it is what I actually held. My point was that by staying the course (which Mr. Bogle recommended adamantly) the diversification worked.
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Re: Jack Bogle - Two Fund Portfolio

Post by lostdog »

tomd37 wrote: Tue May 11, 2021 9:24 pm vineviz - As an older investor (at age 84) I get all the equity diversification I feel I need with the TSM fund and its overseas diversification through certain companies. Please stop trying to continually push your thoughts on this matter on everyone. :annoyed :annoyed To each his/her own.
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Last edited by lostdog on Fri May 14, 2021 4:17 pm, edited 1 time in total.
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Re: Jack Bogle - Two Fund Portfolio

Post by lostdog »

Nathan Drake wrote: Tue May 11, 2021 11:03 pm
tomd37 wrote: Tue May 11, 2021 9:56 pm My equity percentage is 40%, but even in earlier years when it was 60% I still felt the same way as to international diversification. Each of us has their own feelings on the subject and some of us don't want to be "hounded" by others based on their personal feelings. Even Vanguard years ago recommended only 20% for international diversification, but that was their opinion.
You got lucky with a very fortunate period to invest as someone with US only investments. That may not be true for someone else investing as an early accumulator or retiree. Do not confuse outcome with strategy.

I don’t believe anyone is hounding somebody to change course as much as it is to have an honest debate about a critical part of somebody’s investment decision making process.

There’s a lot of disinformation about a US only portfolio on the basis of performance chasing and it could be quite detrimental to certain investors that have reached certain phases of their lives.
+1

New investors need to see these arguments and make a decision.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Northern Flicker wrote: Fri May 14, 2021 3:04 pm
anon_investor wrote: Fri May 14, 2021 1:21 pm
Triple digit golfer wrote: Fri May 14, 2021 12:11 pm
Northern Flicker wrote: Fri May 14, 2021 12:09 pm
abuss368 wrote: Thu May 13, 2021 7:53 pm Hi Bogleheads -

An excellent article from Morningstar regarding our mentor, Jack Bogle’s view on international stocks.

“Bogle had a point on International Stocks”

https://www.morningstar.com/articles/97 ... nal-stocks

Enjoy!
Tony
I included non-US equities in my retirement portfolio starting in 2001. I was 70% stocks at that time. Because I used a glide path, the portfolio was more stock-heavy in the years when US stocks underperformed. As a result, int'l equity diversification has improved my overall return slightly despite the US overperformance since 2008.
Wait! Hold on! You mean that over a couple of decades, international diversification helped your portfolio, despite its recent underperformance?
Cherry picking. :twisted:

If the starting point was 2009, different story.
It's not cherry picking if it is what I actually held. My point was that by staying the course (which Mr. Bogle recommended adamantly) the diversification worked.
Sorry I was not trying to pick on you. I was just trying to pointing out that for different investors their experience may be drastically different depending on the timeframe and investment life stage.

Over a couple of decades for me all in the accumulation phase (still in that phase) all US equities has far outperformed a mix of US and international equities. But I can live with the volatility. I keep enough safe money to sleep at night (call it an emergency fund) and invest the rest. The forced dollar cost averaging of investing per paycheck has worked fine with any volatility. When US outperforms, it seems to do so significantly, when international outperforms, it does so only slightly. Just my own observations during my investment timeframe.

I concede that if I was reducing my equity exposure and nearing retirement/drawdown, I would probably have some international equities to help reduce volatility and smooth the ride. But at that stage capital preservation would override the desire for outperformance.

No one said you have to have to have the same portfolio forever, the 2 fund portfolio has worked during my investment time frame. I am still waiting for a consensus for how much international and bonds to have once I near true "FI". No one agrees on those either...
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Re: Jack Bogle - Two Fund Portfolio

Post by Northern Flicker »

Triple digit golfer wrote: Fri May 14, 2021 12:11 pm
Northern Flicker wrote: Fri May 14, 2021 12:09 pm
abuss368 wrote: Thu May 13, 2021 7:53 pm Hi Bogleheads -

An excellent article from Morningstar regarding our mentor, Jack Bogle’s view on international stocks.

“Bogle had a point on International Stocks”

https://www.morningstar.com/articles/97 ... nal-stocks

Enjoy!
Tony
I included non-US equities in my retirement portfolio starting in 2001. I was 70% stocks at that time. Because I used a glide path, the portfolio was more stock-heavy in the years when US stocks underperformed. As a result, int'l equity diversification has improved my overall return slightly despite the US overperformance since 2008.
Wait! Hold on! You mean that over a couple of decades, international diversification helped your portfolio, despite its recent underperformance?
Yes.
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Re: Jack Bogle - Two Fund Portfolio

Post by midareff »

Northern Flicker wrote: Fri May 14, 2021 5:19 pm
Triple digit golfer wrote: Fri May 14, 2021 12:11 pm
Northern Flicker wrote: Fri May 14, 2021 12:09 pm
abuss368 wrote: Thu May 13, 2021 7:53 pm Hi Bogleheads -

An excellent article from Morningstar regarding our mentor, Jack Bogle’s view on international stocks.

“Bogle had a point on International Stocks”

https://www.morningstar.com/articles/97 ... nal-stocks

Enjoy!
Tony
I included non-US equities in my retirement portfolio starting in 2001. I was 70% stocks at that time. Because I used a glide path, the portfolio was more stock-heavy in the years when US stocks underperformed. As a result, int'l equity diversification has improved my overall return slightly despite the US overperformance since 2008.
Wait! Hold on! You mean that over a couple of decades, international diversification helped your portfolio, despite its recent underperformance?
Yes.
Please advise what Vanguard of other International Fund (ticker) you were in at that time as I'd like to check your recollection of the happenings 20 + years ago. VGTSX only goes back to 6/26/1996, and VTIAX goes back even less.

Using VGTSX and Morningstars proxy for International equity the performance from 2001 to date; .... international performance is up 183.19% vs. 346.73% for the S&P 500. Respectfully, there is no way that helped your portfolio but recollections are a wonderful thing.... unless you have numbers and tickers your just saying.

BTW, Monarchos won the Kentucky Derby in 2001 ... is that of any relevance today?
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Re: Jack Bogle - Two Fund Portfolio

Post by midareff »

lostdog wrote: Fri May 14, 2021 4:13 pm
Nathan Drake wrote: Tue May 11, 2021 11:03 pm
tomd37 wrote: Tue May 11, 2021 9:56 pm My equity percentage is 40%, but even in earlier years when it was 60% I still felt the same way as to international diversification. Each of us has their own feelings on the subject and some of us don't want to be "hounded" by others based on their personal feelings. Even Vanguard years ago recommended only 20% for international diversification, but that was their opinion.
You got lucky with a very fortunate period to invest as someone with US only investments. That may not be true for someone else investing as an early accumulator or retiree. Do not confuse outcome with strategy.

I don’t believe anyone is hounding somebody to change course as much as it is to have an honest debate about a critical part of somebody’s investment decision making process.

There’s a lot of disinformation about a US only portfolio on the basis of performance chasing and it could be quite detrimental to certain investors that have reached certain phases of their lives.
+1

New investors need to see these arguments and make a decision.
Regardless of my position on the issue I totally agree that new investors should be cognizant of the discussion, the issues, the actual position of Jack and Warren and as a last factor, the last 100 years of performance....... wait a minute.. which of those is actually the most important. Let's include in the discussion the percentage of sales of the S&P 500 to international destinations and whether or not that fits the definition of diversification all by itself.... what would Cramer say?
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Re: Jack Bogle - Two Fund Portfolio

Post by Nathan Drake »

anon_investor wrote: Fri May 14, 2021 5:00 pm
Northern Flicker wrote: Fri May 14, 2021 3:04 pm
anon_investor wrote: Fri May 14, 2021 1:21 pm
Triple digit golfer wrote: Fri May 14, 2021 12:11 pm
Northern Flicker wrote: Fri May 14, 2021 12:09 pm
I included non-US equities in my retirement portfolio starting in 2001. I was 70% stocks at that time. Because I used a glide path, the portfolio was more stock-heavy in the years when US stocks underperformed. As a result, int'l equity diversification has improved my overall return slightly despite the US overperformance since 2008.
Wait! Hold on! You mean that over a couple of decades, international diversification helped your portfolio, despite its recent underperformance?
Cherry picking. :twisted:

If the starting point was 2009, different story.
It's not cherry picking if it is what I actually held. My point was that by staying the course (which Mr. Bogle recommended adamantly) the diversification worked.
Sorry I was not trying to pick on you. I was just trying to pointing out that for different investors their experience may be drastically different depending on the timeframe and investment life stage.

Over a couple of decades for me all in the accumulation phase (still in that phase) all US equities has far outperformed a mix of US and international equities. But I can live with the volatility. I keep enough safe money to sleep at night (call it an emergency fund) and invest the rest. The forced dollar cost averaging of investing per paycheck has worked fine with any volatility. When US outperforms, it seems to do so significantly, when international outperforms, it does so only slightly. Just my own observations during my investment timeframe.

I concede that if I was reducing my equity exposure and nearing retirement/drawdown, I would probably have some international equities to help reduce volatility and smooth the ride. But at that stage capital preservation would override the desire for outperformance.

No one said you have to have to have the same portfolio forever, the 2 fund portfolio has worked during my investment time frame. I am still waiting for a consensus for how much international and bonds to have once I near true "FI". No one agrees on those either...
You have to know yourself. If you are okay with the volatility --- and let's be clear hear, not just short term volatility, but the real possibility that US stocks could have a performance similar to 2000-2009 where the real returns were roughly negative --- then feel free to load up on US stocks if you feel that there's a likelier chance that companies continue to outperform with phenomenal earnings growth that can justify near 40 P/E levels which is quite close to the valuations of companies back at the peak of the tech bubble.

I know myself, and I am only okay with having 20% exposure to this asset class at these levels of valuations. For the remaining 80% of holdings, I am diversified geographically and factor wise in funds that are much more attractively priced. I am OK with being wrong, but still having a good return. That's the price of diversification. But I would absolutely be kicking myself if US TSM had another period of abysmal performance for a decade.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Nathan Drake wrote: Fri May 14, 2021 6:25 pm
anon_investor wrote: Fri May 14, 2021 5:00 pm
Northern Flicker wrote: Fri May 14, 2021 3:04 pm
anon_investor wrote: Fri May 14, 2021 1:21 pm
Triple digit golfer wrote: Fri May 14, 2021 12:11 pm

Wait! Hold on! You mean that over a couple of decades, international diversification helped your portfolio, despite its recent underperformance?
Cherry picking. :twisted:

If the starting point was 2009, different story.
It's not cherry picking if it is what I actually held. My point was that by staying the course (which Mr. Bogle recommended adamantly) the diversification worked.
Sorry I was not trying to pick on you. I was just trying to pointing out that for different investors their experience may be drastically different depending on the timeframe and investment life stage.

Over a couple of decades for me all in the accumulation phase (still in that phase) all US equities has far outperformed a mix of US and international equities. But I can live with the volatility. I keep enough safe money to sleep at night (call it an emergency fund) and invest the rest. The forced dollar cost averaging of investing per paycheck has worked fine with any volatility. When US outperforms, it seems to do so significantly, when international outperforms, it does so only slightly. Just my own observations during my investment timeframe.

I concede that if I was reducing my equity exposure and nearing retirement/drawdown, I would probably have some international equities to help reduce volatility and smooth the ride. But at that stage capital preservation would override the desire for outperformance.

No one said you have to have to have the same portfolio forever, the 2 fund portfolio has worked during my investment time frame. I am still waiting for a consensus for how much international and bonds to have once I near true "FI". No one agrees on those either...
You have to know yourself. If you are okay with the volatility --- and let's be clear hear, not just short term volatility, but the real possibility that US stocks could have a performance similar to 2000-2009 where the real returns were roughly negative --- then feel free to load up on US stocks if you feel that there's a likelier chance that companies continue to outperform with phenomenal earnings growth that can justify near 40 P/E levels which is quite close to the valuations of companies back at the peak of the tech bubble.

I know myself, and I am only okay with having 20% exposure to this asset class at these levels of valuations. For the remaining 80% of holdings, I am diversified geographically and factor wise in funds that are much more attractively priced. I am OK with being wrong, but still having a good return, than being right and having an abysmal return.
Yes, you have to know yourself and your risk tolerance as an investor. FYI, I was invested 100% in the S&P500 (albeit with a small emergency fund) through that period (2000-2009), I slept fine. I have some fixed income now and a larger emergency fund, but equities are still 100% US, and I sleep fine.
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Re: Jack Bogle - Two Fund Portfolio

Post by Nathan Drake »

anon_investor wrote: Fri May 14, 2021 6:49 pm
Nathan Drake wrote: Fri May 14, 2021 6:25 pm
anon_investor wrote: Fri May 14, 2021 5:00 pm
Northern Flicker wrote: Fri May 14, 2021 3:04 pm
anon_investor wrote: Fri May 14, 2021 1:21 pm

Cherry picking. :twisted:

If the starting point was 2009, different story.
It's not cherry picking if it is what I actually held. My point was that by staying the course (which Mr. Bogle recommended adamantly) the diversification worked.
Sorry I was not trying to pick on you. I was just trying to pointing out that for different investors their experience may be drastically different depending on the timeframe and investment life stage.

Over a couple of decades for me all in the accumulation phase (still in that phase) all US equities has far outperformed a mix of US and international equities. But I can live with the volatility. I keep enough safe money to sleep at night (call it an emergency fund) and invest the rest. The forced dollar cost averaging of investing per paycheck has worked fine with any volatility. When US outperforms, it seems to do so significantly, when international outperforms, it does so only slightly. Just my own observations during my investment timeframe.

I concede that if I was reducing my equity exposure and nearing retirement/drawdown, I would probably have some international equities to help reduce volatility and smooth the ride. But at that stage capital preservation would override the desire for outperformance.

No one said you have to have to have the same portfolio forever, the 2 fund portfolio has worked during my investment time frame. I am still waiting for a consensus for how much international and bonds to have once I near true "FI". No one agrees on those either...
You have to know yourself. If you are okay with the volatility --- and let's be clear hear, not just short term volatility, but the real possibility that US stocks could have a performance similar to 2000-2009 where the real returns were roughly negative --- then feel free to load up on US stocks if you feel that there's a likelier chance that companies continue to outperform with phenomenal earnings growth that can justify near 40 P/E levels which is quite close to the valuations of companies back at the peak of the tech bubble.

I know myself, and I am only okay with having 20% exposure to this asset class at these levels of valuations. For the remaining 80% of holdings, I am diversified geographically and factor wise in funds that are much more attractively priced. I am OK with being wrong, but still having a good return, than being right and having an abysmal return.
Yes, you have to know yourself and your risk tolerance as an investor. FYI, I was invested 100% in the S&P500 (albeit with a small emergency fund) through that period (2000-2009), I slept fine. I have some fixed income now and a larger emergency fund, but equities are still 100% US, and I sleep fine.
Fixed income would have definitely helped through 2000-2009, but today? Likely not nearly as much.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Nathan Drake wrote: Fri May 14, 2021 6:58 pm
anon_investor wrote: Fri May 14, 2021 6:49 pm
Nathan Drake wrote: Fri May 14, 2021 6:25 pm
anon_investor wrote: Fri May 14, 2021 5:00 pm
Northern Flicker wrote: Fri May 14, 2021 3:04 pm
It's not cherry picking if it is what I actually held. My point was that by staying the course (which Mr. Bogle recommended adamantly) the diversification worked.
Sorry I was not trying to pick on you. I was just trying to pointing out that for different investors their experience may be drastically different depending on the timeframe and investment life stage.

Over a couple of decades for me all in the accumulation phase (still in that phase) all US equities has far outperformed a mix of US and international equities. But I can live with the volatility. I keep enough safe money to sleep at night (call it an emergency fund) and invest the rest. The forced dollar cost averaging of investing per paycheck has worked fine with any volatility. When US outperforms, it seems to do so significantly, when international outperforms, it does so only slightly. Just my own observations during my investment timeframe.

I concede that if I was reducing my equity exposure and nearing retirement/drawdown, I would probably have some international equities to help reduce volatility and smooth the ride. But at that stage capital preservation would override the desire for outperformance.

No one said you have to have to have the same portfolio forever, the 2 fund portfolio has worked during my investment time frame. I am still waiting for a consensus for how much international and bonds to have once I near true "FI". No one agrees on those either...
You have to know yourself. If you are okay with the volatility --- and let's be clear hear, not just short term volatility, but the real possibility that US stocks could have a performance similar to 2000-2009 where the real returns were roughly negative --- then feel free to load up on US stocks if you feel that there's a likelier chance that companies continue to outperform with phenomenal earnings growth that can justify near 40 P/E levels which is quite close to the valuations of companies back at the peak of the tech bubble.

I know myself, and I am only okay with having 20% exposure to this asset class at these levels of valuations. For the remaining 80% of holdings, I am diversified geographically and factor wise in funds that are much more attractively priced. I am OK with being wrong, but still having a good return, than being right and having an abysmal return.
Yes, you have to know yourself and your risk tolerance as an investor. FYI, I was invested 100% in the S&P500 (albeit with a small emergency fund) through that period (2000-2009), I slept fine. I have some fixed income now and a larger emergency fund, but equities are still 100% US, and I sleep fine.
Fixed income would have definitely helped through 2000-2009, but today? Likely not nearly as much.
My fixed income is to help me sleep at night. I Bonds pay 3.54% right now.
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

anon_investor wrote: Fri May 14, 2021 7:12 pm
Nathan Drake wrote: Fri May 14, 2021 6:58 pm
anon_investor wrote: Fri May 14, 2021 6:49 pm
Nathan Drake wrote: Fri May 14, 2021 6:25 pm
anon_investor wrote: Fri May 14, 2021 5:00 pm

Sorry I was not trying to pick on you. I was just trying to pointing out that for different investors their experience may be drastically different depending on the timeframe and investment life stage.

Over a couple of decades for me all in the accumulation phase (still in that phase) all US equities has far outperformed a mix of US and international equities. But I can live with the volatility. I keep enough safe money to sleep at night (call it an emergency fund) and invest the rest. The forced dollar cost averaging of investing per paycheck has worked fine with any volatility. When US outperforms, it seems to do so significantly, when international outperforms, it does so only slightly. Just my own observations during my investment timeframe.

I concede that if I was reducing my equity exposure and nearing retirement/drawdown, I would probably have some international equities to help reduce volatility and smooth the ride. But at that stage capital preservation would override the desire for outperformance.

No one said you have to have to have the same portfolio forever, the 2 fund portfolio has worked during my investment time frame. I am still waiting for a consensus for how much international and bonds to have once I near true "FI". No one agrees on those either...
You have to know yourself. If you are okay with the volatility --- and let's be clear hear, not just short term volatility, but the real possibility that US stocks could have a performance similar to 2000-2009 where the real returns were roughly negative --- then feel free to load up on US stocks if you feel that there's a likelier chance that companies continue to outperform with phenomenal earnings growth that can justify near 40 P/E levels which is quite close to the valuations of companies back at the peak of the tech bubble.

I know myself, and I am only okay with having 20% exposure to this asset class at these levels of valuations. For the remaining 80% of holdings, I am diversified geographically and factor wise in funds that are much more attractively priced. I am OK with being wrong, but still having a good return, than being right and having an abysmal return.
Yes, you have to know yourself and your risk tolerance as an investor. FYI, I was invested 100% in the S&P500 (albeit with a small emergency fund) through that period (2000-2009), I slept fine. I have some fixed income now and a larger emergency fund, but equities are still 100% US, and I sleep fine.
Fixed income would have definitely helped through 2000-2009, but today? Likely not nearly as much.
My fixed income is to help me sleep at night. I Bonds pay 3.54% right now.
The premise of EF also helps as well.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Marseille07 wrote: Fri May 14, 2021 7:14 pm
anon_investor wrote: Fri May 14, 2021 7:12 pm
Nathan Drake wrote: Fri May 14, 2021 6:58 pm
anon_investor wrote: Fri May 14, 2021 6:49 pm
Nathan Drake wrote: Fri May 14, 2021 6:25 pm

You have to know yourself. If you are okay with the volatility --- and let's be clear hear, not just short term volatility, but the real possibility that US stocks could have a performance similar to 2000-2009 where the real returns were roughly negative --- then feel free to load up on US stocks if you feel that there's a likelier chance that companies continue to outperform with phenomenal earnings growth that can justify near 40 P/E levels which is quite close to the valuations of companies back at the peak of the tech bubble.

I know myself, and I am only okay with having 20% exposure to this asset class at these levels of valuations. For the remaining 80% of holdings, I am diversified geographically and factor wise in funds that are much more attractively priced. I am OK with being wrong, but still having a good return, than being right and having an abysmal return.
Yes, you have to know yourself and your risk tolerance as an investor. FYI, I was invested 100% in the S&P500 (albeit with a small emergency fund) through that period (2000-2009), I slept fine. I have some fixed income now and a larger emergency fund, but equities are still 100% US, and I sleep fine.
Fixed income would have definitely helped through 2000-2009, but today? Likely not nearly as much.
My fixed income is to help me sleep at night. I Bonds pay 3.54% right now.
The premise of EF also helps as well.
Yes, the premise of an EF is not flawed. An EF in VTSAX is too much risk for me.
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

anon_investor wrote: Fri May 14, 2021 7:20 pm
Marseille07 wrote: Fri May 14, 2021 7:14 pm
anon_investor wrote: Fri May 14, 2021 7:12 pm
Nathan Drake wrote: Fri May 14, 2021 6:58 pm
anon_investor wrote: Fri May 14, 2021 6:49 pm

Yes, you have to know yourself and your risk tolerance as an investor. FYI, I was invested 100% in the S&P500 (albeit with a small emergency fund) through that period (2000-2009), I slept fine. I have some fixed income now and a larger emergency fund, but equities are still 100% US, and I sleep fine.
Fixed income would have definitely helped through 2000-2009, but today? Likely not nearly as much.
My fixed income is to help me sleep at night. I Bonds pay 3.54% right now.
The premise of EF also helps as well.
Yes, the premise of an EF is not flawed. An EF in VTSAX is too much risk for me.
There was a thread about the premise of an emergency fund being flawed. Excellent discussion! You should check it out.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Triple digit golfer wrote: Fri May 14, 2021 7:25 pm
anon_investor wrote: Fri May 14, 2021 7:20 pm
Marseille07 wrote: Fri May 14, 2021 7:14 pm
anon_investor wrote: Fri May 14, 2021 7:12 pm
Nathan Drake wrote: Fri May 14, 2021 6:58 pm

Fixed income would have definitely helped through 2000-2009, but today? Likely not nearly as much.
My fixed income is to help me sleep at night. I Bonds pay 3.54% right now.
The premise of EF also helps as well.
Yes, the premise of an EF is not flawed. An EF in VTSAX is too much risk for me.
There was a thread about the premise of an emergency fund being flawed. Excellent discussion! You should check it out.
Does this thread have more posts now? :twisted:
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Re: Jack Bogle - Two Fund Portfolio

Post by LadyGeek »

Please stay on-topic.
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Triple digit golfer
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

anon_investor wrote: Fri May 14, 2021 7:31 pm
Triple digit golfer wrote: Fri May 14, 2021 7:25 pm
anon_investor wrote: Fri May 14, 2021 7:20 pm
Marseille07 wrote: Fri May 14, 2021 7:14 pm
anon_investor wrote: Fri May 14, 2021 7:12 pm

My fixed income is to help me sleep at night. I Bonds pay 3.54% right now.
The premise of EF also helps as well.
Yes, the premise of an EF is not flawed. An EF in VTSAX is too much risk for me.
There was a thread about the premise of an emergency fund being flawed. Excellent discussion! You should check it out.
Does this thread have more posts now? :twisted:
Finally, despite years and my selfless contributions! The EF had its life cut short.

Back on topic. My preferred two fund portfolio would be Vanguard Total World Stock plus any low cost intermediate term investment grade bond fund.
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