[favorite] Boglehead quotes

US Local Chapters, Wiki, and general Bogleheads community discussion, news, events, and announcements.
User avatar
Rowan Oak
Posts: 851
Joined: Mon May 09, 2016 2:11 pm
Location: Yoknapatawpha

Re: [favorite] Boglehead quotes

Post by Rowan Oak »

Rick Ferri wrote: Fri Feb 21, 2020 9:33 am It is worth reminding readers that strategy differs from philosophy. We all have the same investment philosophy. We implement the philosophy through strategy, and that is personal and unique to each investor.

There are three main components to investment success:

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

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

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

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

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

Rick Ferri
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
User avatar
Topic Author
grabiner
Advisory Board
Posts: 35265
Joined: Tue Feb 20, 2007 10:58 pm
Location: Columbia, MD

Re: [favorite] Boglehead quotes

Post by grabiner »

Rowan Oak wrote: Tue Dec 08, 2020 5:14 pm
Rick Ferri wrote: Fri Feb 21, 2020 9:33 am I can talk to a whole room full of index fund investors who enthusiastically embrace a passive philosophy, but when I ask how many in the room have the exact same portfolio as another person in the room, no one will raise their hand.
This relates to one of my regular quotes, which I give when I post my asset allocation. "I never advise that anyone match my portfolio. If a portfolio like mine is right for you, then you know enough to ignore that advice."
Wiki David Grabiner
random_walker_77
Posts: 2207
Joined: Tue May 21, 2013 8:49 pm

Re: [favorite] Boglehead quotes

Post by random_walker_77 »

A hat tip to thx1138 who pointed me to this quote:
White Coat Investor wrote: Wed Feb 05, 2020 10:22 am Beginning investors have a hard time staying the course at market lows.
Intermediate investors have a hard time staying the course at market highs.
Advanced investors stay the course.
User avatar
bertilak
Posts: 10711
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: [favorite] Boglehead quotes

Post by bertilak »

random_walker_77 wrote: Fri Jan 01, 2021 11:44 am A hat tip to thx1138 who pointed me to this quote:
White Coat Investor wrote: Wed Feb 05, 2020 10:22 am Beginning investors have a hard time staying the course at market lows.
Intermediate investors have a hard time staying the course at market highs.
Advanced investors stay the course.
I like that one!
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
User avatar
birdog
Posts: 1507
Joined: Fri Apr 07, 2017 1:35 pm
Location: Anytown, USA

Re: [favorite] Boglehead quotes

Post by birdog »

grabiner wrote: Tue Jan 14, 2020 9:35 pm From Value of Active and Ongoing Reading of the Bogleheads Forums:

William Bernstein (Dr.) likes to say that a portfolio is a like a bar of soap--the more it's handled, the less there is!
Love it! I may borrow that one.
User avatar
abuss368
Posts: 27850
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: [favorite] Boglehead quotes

Post by abuss368 »

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

Tony
John C. Bogle: “Simplicity is the master key to financial success."
User avatar
Topic Author
grabiner
Advisory Board
Posts: 35265
Joined: Tue Feb 20, 2007 10:58 pm
Location: Columbia, MD

Re: [favorite] Boglehead quotes

Post by grabiner »

From How long would you back a losing horse, to Stay The Course?:
wolf359 wrote: Sat Mar 06, 2021 9:08 pm However, if you're happy with the performance of every single component of your portfolio, then you probably aren't properly diversified. The point of diversification is that some parts will zig while others are zagging.
Wiki David Grabiner
lurkman
Posts: 118
Joined: Tue Mar 04, 2014 6:16 pm

Re: [favorite] Boglehead quotes

Post by lurkman »

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

—A friend of mine, after having his head handed to him in margin calls amidst heavy losses in the late 1990s. He attributed the quote to an ancient Tamil poet who lived sometime around 5th century CE.
User avatar
LadyGeek
Site Admin
Posts: 95466
Joined: Sat Dec 20, 2008 4:34 pm
Location: Philadelphia
Contact:

Re: [favorite] Boglehead quotes

Post by LadyGeek »

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

Who knows?
Exactly! Is anyone really surprised that it's May and we're having a sell-off. :oops:
A limerick
Sell in May and go away
A false adage that some convey
Getting out and getting in
To Bogleheads, a sin
It's time in the market, do not stray
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
User avatar
Topic Author
grabiner
Advisory Board
Posts: 35265
Joined: Tue Feb 20, 2007 10:58 pm
Location: Columbia, MD

Re: [favorite] Boglehead quotes

Post by grabiner »

From Thoughts on AIG Power Select Builder 8, but a general comment on many complex financial products, particularly equity-indexed annuities:
rutrow2025 wrote:Any vehicle that goes to this much trouble to obfuscate the real math can't be good.
Wiki David Grabiner
User avatar
Topic Author
grabiner
Advisory Board
Posts: 35265
Joined: Tue Feb 20, 2007 10:58 pm
Location: Columbia, MD

Re: [favorite] Boglehead quotes

Post by grabiner »

From Re: Time to exchange Total Bond Index for Short Term Bond Index?
nisiprius wrote: Tue Oct 04, 2022 8:06 am The Boglehead philosophy is that "average" is a) good enough, b) actually pretty good, and c) probably better than the results of trying to beat the average.
Wiki David Grabiner
User avatar
Rowan Oak
Posts: 851
Joined: Mon May 09, 2016 2:11 pm
Location: Yoknapatawpha

Re: [favorite] Boglehead quotes

Post by Rowan Oak »

from What's in Rick Ferri's portfolio?
Rick Ferri wrote: Sun Aug 21, 2022 8:25 pm
Philosophy is universal
Strategy is personal.
Discipline in mandatory.

If you want to know what I mean by this, watch this video:https://youtu.be/wyxIb9BI7_o
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
User avatar
fishandgolf
Posts: 794
Joined: Fri Nov 25, 2016 1:50 pm

Re: [favorite] Boglehead quotes

Post by fishandgolf »

You never win or lose............

.........you only win or learn.
User avatar
Rowan Oak
Posts: 851
Joined: Mon May 09, 2016 2:11 pm
Location: Yoknapatawpha

Re: [favorite] Boglehead quotes

Post by Rowan Oak »

nisiprius wrote: Tue Aug 29, 2023 9:09 pm Tune out the noise. Don't invest in individual stocks, and if you're not investing in individual stocks, don't pay attention to what you are reading about individual stocks.
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
User avatar
blimp
Posts: 242
Joined: Wed May 29, 2019 3:45 pm

Re: [favorite] Boglehead quotes

Post by blimp »

livesoft wrote: Sun Aug 23, 2015 6:30 pm There is no play money. It is all real money.
This is 24 karat gold
Tamalak
Posts: 1979
Joined: Fri May 06, 2016 2:29 pm

Re: [favorite] Boglehead quotes

Post by Tamalak »

Diversification means always having to say you're sorry
User avatar
tennisplyr
Posts: 3700
Joined: Tue Jan 28, 2014 12:53 pm
Location: Sarasota, FL

Re: [favorite] Boglehead quotes

Post by tennisplyr »

I can give you a number and I can give you a date but I can't give you both.
“Those who move forward with a happy spirit will find that things always work out.” -Retired 13 years 😀
MrJones
Posts: 773
Joined: Sat Mar 18, 2017 2:23 am

Re: Boglehead quotes

Post by MrJones »

G-Money wrote: Fri Feb 14, 2014 9:18 am When I want to get a good Boglehead quote, I pretty much just search the forum for any post by nisiprius.
Ha, this is a great quote in itself! Wise, practical, and true.
User avatar
Topic Author
grabiner
Advisory Board
Posts: 35265
Joined: Tue Feb 20, 2007 10:58 pm
Location: Columbia, MD

Re: [favorite] Boglehead quotes

Post by grabiner »

From Help Me Convince A Friend This Annuity is Not Good! on a possibly misleading annuity sales pitch:
Jack FFR1846 wrote: Sat Sep 09, 2023 11:39 am I suspect that the sales person has told your friend that this is an SPIA but in reality, it's an index annuity with an $80,000 commission for the sales person.... Buying an SPIA is like going to the grocery store and buying a gallon of milk. If you had a slick sales person jump out of the bread aisle to sell you this orange carton gallon of milk that is bought on a payment plan instead of for $2.79 that the milk on the shelf costs, would you knee the salesman and pour milk on his head or sign up for payments? I know what I'd do.
Wiki David Grabiner
User avatar
Rowan Oak
Posts: 851
Joined: Mon May 09, 2016 2:11 pm
Location: Yoknapatawpha

Re: [favorite] Boglehead quotes

Post by Rowan Oak »

nisiprius wrote: Thu Dec 21, 2023 7:18 pm Please listen carefully, there are people out there willing to tell you whatever you want to hear, but in the forum we have nothing to sell you and we are telling you the truth.
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
WhitePuma
Posts: 934
Joined: Fri May 05, 2023 6:34 pm

Re: [favorite] Boglehead quotes

Post by WhitePuma »

A dollar saved is $1.25 earned
WhitePuma
Posts: 934
Joined: Fri May 05, 2023 6:34 pm

Re: [favorite] Boglehead quotes

Post by WhitePuma »

The stock market is a distraction to the task of investing.
Post Reply