Jack Bogle - Two Fund Portfolio

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tomd37
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Re: Jack Bogle - Two Fund Portfolio

Post by tomd37 »

As a couple in our mid-80s with a 40/60 stock/bond asset allocation and having a sincere desire to keep things simple, I keep our portfolios in two funds; Total Stock Market Index (VTSAX) and Intermediate-Term Bond Index (VBILX). I just cannot see any real benefit where adding up to 20% of our stock allocation (a mere 8%) is going to make that much difference in our remaining years. Twenty years ago my thinking would be different but simplicity rules now. I really never believed that anything less than 10% was going to have any significant impact.

I keep Jack's "Common Sense on Mutual Funds" (10th Anniversary Edition) and "The Little Book of Common Sense Investing" on my bookshelf above me and have reviewed them both this year. They keep me on the straight and narrow path where and when I need to be.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

tomd37 wrote: Mon Dec 07, 2020 8:31 pm As a couple in our mid-80s with a 40/60 stock/bond asset allocation and having a sincere desire to keep things simple, I keep our portfolios in two funds; Total Stock Market Index (VTSAX) and Intermediate-Term Bond Index (VBILX). I just cannot see any real benefit where adding up to 20% of our stock allocation (a mere 8%) is going to make that much difference in our remaining years. Twenty years ago my thinking would be different but simplicity rules now. I really never believed that anything less than 10% was going to have any significant impact.

I keep Jack's "Common Sense on Mutual Funds" (10th Anniversary Edition) and "The Little Book of Common Sense Investing" on my bookshelf above me and have reviewed them both this year. They keep me on the straight and narrow path where and when I need to be.
That is an valid point. With a 40% stock and 60% bond allocation, a 20% of stock allocation to international is only 8% of a portfolio. Not much to move the needle up or down!

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

Post by abuss368 »

Is anyone aware what the year end dividend will be for Total Stock Market?

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

Post by helloeveryone »

abuss368 wrote: Sat Dec 19, 2020 5:28 pm Is anyone aware what the year end dividend will be for Total Stock Market?

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Tony
Silly question- so stocks and mutual funds do quarterly dividends AND at the end of year there is a end of year dividend? Or you refer to the last quarter’s dividends?
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

helloeveryone wrote: Mon Dec 21, 2020 4:44 pm
abuss368 wrote: Sat Dec 19, 2020 5:28 pm Is anyone aware what the year end dividend will be for Total Stock Market?

Best wishes.
Tony
Silly question- so stocks and mutual funds do quarterly dividends AND at the end of year there is a end of year dividend? Or you refer to the last quarter’s dividends?
Companies can declare dividends at different times intervals. Some may pay dividends monthly, more do so quarterly, some twice a year, and some (like international companies) pay once a year.

The mutual fund - Total Stock - however declares quarterly dividends to fund shareholders.

Does that make sense?

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

Post by helloeveryone »

abuss368 wrote: Mon Dec 21, 2020 8:39 pm
helloeveryone wrote: Mon Dec 21, 2020 4:44 pm
abuss368 wrote: Sat Dec 19, 2020 5:28 pm Is anyone aware what the year end dividend will be for Total Stock Market?

Best wishes.
Tony
Silly question- so stocks and mutual funds do quarterly dividends AND at the end of year there is a end of year dividend? Or you refer to the last quarter’s dividends?
Companies can declare dividends at different times intervals. Some may pay dividends monthly, more do so quarterly, some twice a year, and some (like international companies) pay once a year.

The mutual fund - Total Stock - however declares quarterly dividends to fund shareholders.

Does that make sense?

Tony
Yes that's helpful. I hold s&P 500 index in vanguard and fidelity and they do quarterly. Don't own individual stocks so I actually didn't realize they differ in how they pay dividends. Thank you!
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Vanguard 2020 Mutual Fund Distribution Dates

Post by Taylor Larimore »

abuss368 wrote: Sat Dec 19, 2020 5:28 pm Is anyone aware what the year end dividend will be for Total Stock Market?

Best wishes.
Tony
Tony:

It was difficult to find, but Vanguard has posted this answer to your question:

https://investor.vanguard.com/etf/list? ... tributions
Best wishes.
Taylor
Jack Bogle's Words of Wisdom:
"If you invested $10,000 in the S&P 500 Index when it was first created in 1926, you would have had $33.1 million dollars by September 2007 -- but only if you'd reinvested all your dividends. If you didn't reinvest them, your portfolio would have been worth only $1.2 million.
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

This might also help. Looks like they're estimate $0.35 per share.

https://advisors.vanguard.com/iwe/pdf/t ... FYEEST.pdf
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Re: Vanguard 2020 Mutual Fund Distribution Dates

Post by abuss368 »

Taylor Larimore wrote: Tue Dec 22, 2020 12:35 pm
abuss368 wrote: Sat Dec 19, 2020 5:28 pm Is anyone aware what the year end dividend will be for Total Stock Market?

Best wishes.
Tony
Tony:

It was difficult to find, but Vanguard has posted this answer to your question:

https://investor.vanguard.com/etf/list? ... tributions
Best wishes.
Taylor
Jack Bogle's Words of Wisdom:
"If you invested $10,000 in the S&P 500 Index when it was first created in 1926, you would have had $33.1 million dollars by September 2007 -- but only if you'd reinvested all your dividends. If you didn't reinvest them, your portfolio would have been worth only $1.2 million.
Thanks Taylor! You are correct, Vanguard changed the “news” section of the website where the dividends historically were listed. Now it is very hard to locate.

For stay the course investors it does not matter. I was curious. But I think I am going to stop looking for it. Whatever shows up in the account is the answer.

Merry Christmas and Happy Holiday’s!
Tony
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Total Stock Market paid a 4th quarter dividend!

Best.
Tony
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Bogleheads -

I have read even more Two Fund Portfolio threads lately. Appears this strategy is gaining favor and this thread has been very good in terms of information.

I hope investors continue to learn and grow!

Tony
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Bogleheads -

It has been a while since I read some of the thoughts and blogs on JL Collins website. There are some new thoughts that I thought would interest you: https://jlcollinsnh.com/

Keep investing simple. Total Stock Market does just that.

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

Post by absolute zero »

Hopefully most newcomers on this forum can look past the strategies that promote putting all their equities in US total market funds. Hopefully they take the time to learn the value of diversification, which can easily be achieved through addition of international stocks or small cap stocks (or both).
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Re: Jack Bogle - Two Fund Portfolio

Post by Brianmcg321 »

abuss368 wrote: Tue Mar 16, 2021 8:31 pm Bogleheads -

It has been a while since I read some of the thoughts and blogs on JL Collins website. There are some new thoughts that I thought would interest you: https://jlcollinsnh.com/

Keep investing simple. Total Stock Market does just that.

Best.
Tony

Great stuff. JL hadn't posted in a while. Too busy counting all his money from his blog I guess.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

abuss368 wrote: Tue Mar 16, 2021 8:31 pm Keep investing simple. Total Stock Market does just that.
It sure does! I bought some Total Stock Market today in my taxable and HSA. :sharebeer
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

absolute zero wrote: Tue Mar 16, 2021 9:06 pm Hopefully most newcomers on this forum can look past the strategies that promote putting all their equities in US total market funds. Hopefully they take the time to learn the value of diversification, which can easily be achieved through addition of international stocks or small cap stocks (or both).
If I understand correct, international or small cap stocks is additional diversification? I can understand international for additional diversification, but small cal stocks would represent an overweight and de-worse-ification as the remaining US market would be underweight. In addition, small cap (like all cap stocks) are included in Total Stock and Total International Stock.

Tony
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

anon_investor wrote: Tue Mar 16, 2021 9:14 pm
abuss368 wrote: Tue Mar 16, 2021 8:31 pm Keep investing simple. Total Stock Market does just that.
It sure does! I bought some Total Stock Market today in my taxable and HSA. :sharebeer
Me too! My truck is backing up. The simplicity of Jack Bogle’s and Warren Buffett’s portfolio works.

Tony
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

abuss368 wrote: Tue Mar 16, 2021 9:23 pm
anon_investor wrote: Tue Mar 16, 2021 9:14 pm
abuss368 wrote: Tue Mar 16, 2021 8:31 pm Keep investing simple. Total Stock Market does just that.
It sure does! I bought some Total Stock Market today in my taxable and HSA. :sharebeer
Me too! My truck is backing up. The simplicity of Jack Bogle’s and Warren Buffett’s portfolio works.

Tony
We buy VTSAX in our taxable, I love the tax efficiency and ease of purchasing.
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Re: Jack Bogle - Two Fund Portfolio

Post by Brianmcg321 »

absolute zero wrote: Tue Mar 16, 2021 9:06 pm Hopefully most newcomers on this forum can look past the strategies that promote putting all their equities in US total market funds. Hopefully they take the time to learn the value of diversification, which can easily be achieved through addition of international stocks or small cap stocks (or both).
I figure once I get tired of making money I will add a healthy dose of international. That way I can brag at cocktail parties how diversified I am. :beer
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Brianmcg321 wrote: Tue Mar 16, 2021 10:06 pm
absolute zero wrote: Tue Mar 16, 2021 9:06 pm Hopefully most newcomers on this forum can look past the strategies that promote putting all their equities in US total market funds. Hopefully they take the time to learn the value of diversification, which can easily be achieved through addition of international stocks or small cap stocks (or both).
I figure once I get tired of making money I will add a healthy dose of international. That way I can brag at cocktail parties how diversified I am. :beer
Isn't that what bonds are for? :sharebeer
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

anon_investor wrote: Tue Mar 16, 2021 10:01 pm
abuss368 wrote: Tue Mar 16, 2021 9:23 pm
anon_investor wrote: Tue Mar 16, 2021 9:14 pm
abuss368 wrote: Tue Mar 16, 2021 8:31 pm Keep investing simple. Total Stock Market does just that.
It sure does! I bought some Total Stock Market today in my taxable and HSA. :sharebeer
Me too! My truck is backing up. The simplicity of Jack Bogle’s and Warren Buffett’s portfolio works.

Tony
We buy VTSAX in our taxable, I love the tax efficiency and ease of purchasing.
Total stock is very tax efficient. Morningstar has a very low (almost immaterial) tax cost.

I hold this fund in all our accounts.

Tony
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

anon_investor wrote: Tue Mar 16, 2021 10:08 pm
Brianmcg321 wrote: Tue Mar 16, 2021 10:06 pm
absolute zero wrote: Tue Mar 16, 2021 9:06 pm Hopefully most newcomers on this forum can look past the strategies that promote putting all their equities in US total market funds. Hopefully they take the time to learn the value of diversification, which can easily be achieved through addition of international stocks or small cap stocks (or both).
I figure once I get tired of making money I will add a healthy dose of international. That way I can brag at cocktail parties how diversified I am. :beer
Isn't that what bonds are for? :sharebeer
That is a good point. Once an investor has won the game, control risk with bonds.

Tony
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Re: Jack Bogle - Two Fund Portfolio

Post by birdog »

Brianmcg321 wrote: Tue Mar 16, 2021 10:06 pm
absolute zero wrote: Tue Mar 16, 2021 9:06 pm Hopefully most newcomers on this forum can look past the strategies that promote putting all their equities in US total market funds. Hopefully they take the time to learn the value of diversification, which can easily be achieved through addition of international stocks or small cap stocks (or both).
I figure once I get tired of making money I will add a healthy dose of international. That way I can brag at cocktail parties how diversified I am. :beer
:beer
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Re: Jack Bogle - Two Fund Portfolio

Post by birdog »

abuss368 wrote: Tue Mar 16, 2021 9:23 pm
anon_investor wrote: Tue Mar 16, 2021 9:14 pm
abuss368 wrote: Tue Mar 16, 2021 8:31 pm Keep investing simple. Total Stock Market does just that.
It sure does! I bought some Total Stock Market today in my taxable and HSA. :sharebeer
Me too! My truck is backing up. The simplicity of Jack Bogle’s and Warren Buffett’s portfolio works.

Tony
I’ll side with Bogle and Buffett as well.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

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

Post by Dave55 »

abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
Way two many funds Tony. :wink:

Dave
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Dave55 wrote: Tue Apr 20, 2021 6:32 pm
abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
Way two many funds Tony. :wink:

Dave
VTSAX and chill!
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Dave55 wrote: Tue Apr 20, 2021 6:32 pm
abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
Way two many funds Tony. :wink:

Dave
Priceless Dave! Love it.
Tony
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

anon_investor wrote: Tue Apr 20, 2021 6:34 pm
Dave55 wrote: Tue Apr 20, 2021 6:32 pm
abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
Way two many funds Tony. :wink:

Dave
VTSAX and chill!
I like that saying a lot. Have seen it in multiple threads on the forum. You sold all your international correct?

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

Post by Taylor Larimore »

Bogleheads:

I think we should call it: "TONY'S TWO-FUND PORTFOLIO".

By any name--it's a winner!

Taylor
Jack Bogle's Words of Wisdom: "The Vanguard Total Stock Market Index fund and its Total Bond Market cousin represent the purest form of common-sense investing."
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

anon_investor wrote: Tue Apr 20, 2021 6:34 pm
Dave55 wrote: Tue Apr 20, 2021 6:32 pm
abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
Way two many funds Tony. :wink:

Dave
VTSAX and chill!
What about an emergency fund?
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Re: Tony's Two-Fund Portfolio

Post by abuss368 »

Taylor Larimore wrote: Tue Apr 20, 2021 7:11 pm Bogleheads:

I think we should call it: "TONY'S TWO-FUND PORTFOLIO".

By any name--it's a winner!

Taylor
Jack Bogle's Words of Wisdom: "The Vanguard Total Stock Market Index fund and its Total Bond Market cousin represent the purest form of common-sense investing."
Thank you Taylor! Thank you Jack Bogle!

Tony
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Triple digit golfer wrote: Tue Apr 20, 2021 7:26 pm
anon_investor wrote: Tue Apr 20, 2021 6:34 pm
Dave55 wrote: Tue Apr 20, 2021 6:32 pm
abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
Way two many funds Tony. :wink:

Dave
VTSAX and chill!
What about an emergency fund?
I do not have a separate emergency fund. We have one simple checking and money market account for cash. It builds. It gets used. There when we need it.

Tony
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Triple digit golfer wrote: Tue Apr 20, 2021 7:26 pm
anon_investor wrote: Tue Apr 20, 2021 6:34 pm
Dave55 wrote: Tue Apr 20, 2021 6:32 pm
abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
Way two many funds Tony. :wink:

Dave
VTSAX and chill!
What about an emergency fund?
If my EF is in I Bonds, but I count it as part of my fixed income allocation, does it really exist? :twisted:
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

anon_investor wrote: Tue Apr 20, 2021 8:04 pm
Triple digit golfer wrote: Tue Apr 20, 2021 7:26 pm
anon_investor wrote: Tue Apr 20, 2021 6:34 pm
Dave55 wrote: Tue Apr 20, 2021 6:32 pm
abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
Way two many funds Tony. :wink:

Dave
VTSAX and chill!
What about an emergency fund?
If my EF is in I Bonds, but I count it as part of my fixed income allocation, does it really exist? :twisted:
Nope!

I won't derail this thread, but I'm very interested in I bonds or EE bonds as a portion of my 20% in bonds. Still trying to understand pros and cons of each and whether they make sense for me. It would be nice to have some bonds in taxable and they seem like a good way to do it.
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Re: Jack Bogle - Two Fund Portfolio

Post by gubernaculum »

My two fund portfolio is VTSAX and VITAX. VTSAX is equivalent to bonds now, VITAX is equivalent to stocks :D
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

abuss368 wrote: Tue Apr 20, 2021 6:43 pm
anon_investor wrote: Tue Apr 20, 2021 6:34 pm
Dave55 wrote: Tue Apr 20, 2021 6:32 pm
abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
Way two many funds Tony. :wink:

Dave
VTSAX and chill!
I like that saying a lot. Have seen it in multiple threads on the forum. You sold all your international correct?

Tony
I never really had any international (maybe a long time ago in a target date fund in my very first 401k). I did have some actively managed funds and individual stocks before I found BHs. I have unwound all my individual stock and actively managed mutual fund positions from my taxable account now (as of last year). While not 100% VTSAX, in my taxable account I am down to 4 different Vanguard index mutual funds/ETFs. I am pretty much only adding to VTSAX per pay check to my taxable account and to S&P500+extended market in my 401k (in a ratio that replicates VTSAX, so I just count it as VTSAX in my AA). It would be accurate to say, aside from existing positions I won't sell due to large unrealized capital gains, I hold a version of the 2 fund portfolio total stock market index + treasuries. I did hold a total bond fund before, but I switched over to treasuries only in early 2020.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

anon_investor wrote: Tue Apr 20, 2021 9:14 pm
abuss368 wrote: Tue Apr 20, 2021 6:43 pm
anon_investor wrote: Tue Apr 20, 2021 6:34 pm
Dave55 wrote: Tue Apr 20, 2021 6:32 pm
abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
Way two many funds Tony. :wink:

Dave
VTSAX and chill!
I like that saying a lot. Have seen it in multiple threads on the forum. You sold all your international correct?

Tony
I never really had any international (maybe a long time ago in a target date fund in my very first 401k). I did have some actively managed funds and individual stocks before I found BHs. I have unwound all my individual stock and actively managed mutual fund positions from my taxable account now (as of last year). While not 100% VTSAX, in my taxable account I am down to 4 different Vanguard index mutual funds/ETFs. I am pretty much only adding to VTSAX per pay check to my taxable account and to S&P500+extended market in my 401k (in a ratio that replicates VTSAX, so I just count it as VTSAX in my AA). It would be accurate to say, aside from existing positions I won't sell due to large unrealized capital gains, I hold a version of the 2 fund portfolio total stock market index + treasuries. I did hold a total bond fund before, but I switched over to treasuries only in early 2020.
We have another awesome poster on this thread who simply has S&P 500 and cash.

Can’t go wrong there.

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

Post by mikejuss »

abuss368 wrote: Tue Apr 20, 2021 5:49 pm BOGLEHEADS!

Any new investors to the Jack Bogle and Warren Buffett Two Fund Portfolio?

Tony
For now, I'm sticking with 3 funds--VTSAX, VTIAX, and VBTLX--across my brokerage, Roth IRA, and 401(k) accounts. I hold them all at the same asset allocation--75% stocks, 25% bonds--for ease of additional purchasing. God bless Jack Bogle for making money management as easy as 1, 2, 3.
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
mikejuss
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Re: Jack Bogle - Two Fund Portfolio

Post by mikejuss »

gubernaculum wrote: Tue Apr 20, 2021 8:26 pm My two fund portfolio is VTSAX and VITAX. VTSAX is equivalent to bonds now, VITAX is equivalent to stocks :D
That's dangerous stuff, gubernaculum. Be careful with sector-specific funds.
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
absolute zero
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Re: Jack Bogle - Two Fund Portfolio

Post by absolute zero »

mikejuss wrote: Tue Apr 20, 2021 9:32 pm
gubernaculum wrote: Tue Apr 20, 2021 8:26 pm My two fund portfolio is VTSAX and VITAX. VTSAX is equivalent to bonds now, VITAX is equivalent to stocks :D
That's dangerous stuff, gubernaculum. Be careful with sector-specific funds.
I agree - his portfolio is less diverse due to the addition of the VITAX technology fund. But then again, the “Jack Bogle two fund portfolio” that many are describing in this thread is pretty poorly diversified to begin with. So relatively speaking, gubernaculum may be making only a small mistake.

That said, I sure wouldn’t recommend that combo.
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anon_investor
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

absolute zero wrote: Tue Apr 20, 2021 9:58 pm
mikejuss wrote: Tue Apr 20, 2021 9:32 pm
gubernaculum wrote: Tue Apr 20, 2021 8:26 pm My two fund portfolio is VTSAX and VITAX. VTSAX is equivalent to bonds now, VITAX is equivalent to stocks :D
That's dangerous stuff, gubernaculum. Be careful with sector-specific funds.
I agree - his portfolio is less diverse due to the addition of the VITAX technology fund. But then again, the “Jack Bogle two fund portfolio” that many are describing in this thread is pretty poorly diversified to begin with. So relatively speaking, gubernaculum may be making only a small mistake.

That said, I sure wouldn’t recommend that combo.
"Poorly diversified" is pretty inaccurate. VTSAX is not quite ARKK.
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Re: Jack Bogle - Two Fund Portfolio

Post by Alchemist »

absolute zero wrote: Tue Apr 20, 2021 9:58 pm But then again, the “Jack Bogle two fund portfolio” that many are describing in this thread is pretty poorly diversified to begin with.
This is the height of silliness. VTSAX, and other US TSM stock funds like it, own around 3,000 stocks across all size cohorts and across all industries.

VTSAX is a highly diversified fund.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Alchemist wrote: Wed Apr 21, 2021 5:14 am
absolute zero wrote: Tue Apr 20, 2021 9:58 pm But then again, the “Jack Bogle two fund portfolio” that many are describing in this thread is pretty poorly diversified to begin with.
This is the height of silliness. VTSAX, and other US TSM stock funds like it, own around 3,000 stocks across all size cohorts and across all industries.

VTSAX is a highly diversified fund.
I would agree. Total Stock is a highly diversified fund holding thousands of companies at very low cost.

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

Post by mikejuss »

Alchemist wrote: Wed Apr 21, 2021 5:14 am
absolute zero wrote: Tue Apr 20, 2021 9:58 pm But then again, the “Jack Bogle two fund portfolio” that many are describing in this thread is pretty poorly diversified to begin with.
This is the height of silliness. VTSAX, and other US TSM stock funds like it, own around 3,000 stocks across all size cohorts and across all industries.

VTSAX is a highly diversified fund.
I too was confused by that comment. If an index fund with over 3,000 stocks such as VTSAX is not considered diversified, what would be? Is there a threshold for diversification--say, a fund with 5,000 or even 10,000 stocks?
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
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Jack Bogle - Two Fund Portfolio

Post by marklearnsbogle »

VTSAX can be described as many qualities, but "poorly diversified" is not one that ever comes to mind. I'd happily go 180 degrees in the other direction and refer to it as brilliantly, beautifully, bountifully diversified. Talk about owning a huge share of small, medium, and large cap stocks at an unbelievably low er!
"Nothing is simpler than owning the stock market and holding it forever, and that’s essentially the idea behind the index fund.” - Bogle.
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

It's pretty obvious. VTSAX has 3,000+ stocks all headquartered in the same country and excludes half of the world's market capitalization and ignores all companies not headquartered in one country.
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Re: Jack Bogle - Two Fund Portfolio

Post by absolute zero »

abuss368 wrote: Wed Apr 21, 2021 8:40 am
Alchemist wrote: Wed Apr 21, 2021 5:14 am
absolute zero wrote: Tue Apr 20, 2021 9:58 pm But then again, the “Jack Bogle two fund portfolio” that many are describing in this thread is pretty poorly diversified to begin with.
This is the height of silliness. VTSAX, and other US TSM stock funds like it, own around 3,000 stocks across all size cohorts and across all industries.

VTSAX is a highly diversified fund.
I would agree. Total Stock is a highly diversified fund holding thousands of companies at very low cost.

Tony
We've got folks in this thread (including you) giving high-fives to each other over an SP500 + cash portfolio. That's most definitely a poor level of diversification. No exposure to stocks outside of 1 single country, no exposure to small companies, no exposure to term risk. To be clear, there are certainly bigger investing mistakes that can be made than a "jack bogle two fund portfolio." So I guess you and others in this thread can take solace in that.
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Re: Jack Bogle - Two Fund Portfolio

Post by mikejuss »

Triple digit golfer wrote: Wed Apr 21, 2021 12:15 pm It's pretty obvious. VTSAX has 3,000+ stocks all headquartered in the same country and excludes half of the world's market capitalization and ignores all companies not headquartered in one country.
But didn't Jack Bogle regularly point out that investing in US companies means that you reap the benefits of profits derived from abroad too?
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

mikejuss wrote: Wed Apr 21, 2021 12:30 pm
Triple digit golfer wrote: Wed Apr 21, 2021 12:15 pm It's pretty obvious. VTSAX has 3,000+ stocks all headquartered in the same country and excludes half of the world's market capitalization and ignores all companies not headquartered in one country.
But didn't Jack Bogle regularly point out that investing in US companies means that you reap the benefits of profits derived from abroad too?
Yes he did. Jack Bogle also said, "If there's one place I don't want people to take my advice, it's international. I want you to think it through for yourself."

Investing in foreign companies also allows one to reap the benefits of profits derived from the U.S. It works both ways.

Many people disagree with Jack's opinion on this topic. Vanguard, Fidelity, Blackrock, State Street, and basically all the others hold around 40% of equities in international equities in their target/lifecycle funds.

I won't post again on the topic because I don't want to derail the two fund portfolio party, but I can't think of a good reason to only own stocks from one market and ignore the other half of the world's market capitalization. There are reasons, but they're not good, and almost always point to past performance.
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