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
[favorite] Boglehead quotes
Re: [favorite] Boglehead quotes
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
Re: [favorite] Boglehead quotes
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."Rowan Oak wrote: ↑Tue Dec 08, 2020 5:14 pmRick 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.
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Re: [favorite] Boglehead quotes
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.
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Re: [favorite] Boglehead quotes
I like that one!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.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Re: [favorite] Boglehead quotes
Love it! I may borrow that one.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!
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Re: [favorite] Boglehead quotes
Taylor’s! “Stocks let us eat well. Bonds let us sleep well”.
Tony
Tony
John C. Bogle: “Simplicity is the master key to financial success."
Re: [favorite] Boglehead quotes
“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.
—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.
Re: [favorite] Boglehead quotes
From: Subject: U.S. stocks in free fall (inner-most quote removed)
Re: [favorite] Boglehead quotes
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.
Re: [favorite] Boglehead quotes
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
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Re: [favorite] Boglehead quotes
You never win or lose............
.........you only win or learn.
.........you only win or learn.
Re: [favorite] Boglehead quotes
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
Re: [favorite] Boglehead quotes
Diversification means always having to say you're sorry
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Re: [favorite] Boglehead quotes
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 😀
Re: [favorite] Boglehead quotes
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.
Re: [favorite] Boglehead quotes
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
Re: [favorite] Boglehead quotes
A dollar saved is $1.25 earned
Re: [favorite] Boglehead quotes
The stock market is a distraction to the task of investing.