John Bogle: Stock Market Loss

Meaning of John Bogle Money Quote: saying it should be expected to see wild swings in the stock market. John Bogle said:
 

 

“If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks” — John Bogle

In this quote, John Bogle seems to be advising that individuals should only invest in stocks if they have a sufficiently long investment time horizon and high risk tolerance. Some key points:

• Bogle notes that anyone who has significant difficulty envisioning or accepting the potential of a 20% drop in the stock market at some point should not be investing in equities.
• He appears to be saying that only investors who understand short-term volatility is inevitable and have the fortitude to wait out downturns rather than panic-selling belong in the stock market.
• The quote implies that stocks are inherently risky assets which may experience sharp corrections, so they are not suitable for those who will be overly stressed by such inevitable short-term drawdowns.

Overall, Bogle seems to be cautioning that investing in stocks requires emotional preparedness to withstand sizeable temporary losses, as such fluctuations are a normal part of equity market cycles. His advice is that if the prospect of a 20% decline causes undue anxiety, one’s risk tolerance may be insufficient for the long-term ups and downs of the stock market.

Birthday: May 8, 1929 – Death: January 16, 2019

John Bogle: Investors Pay Nothing

John Bogle Money Quote saying he defines ironic as getting all when paying none in the stock market. John Bogle said:
 

 

“The grim irony of investing, then, is that we investors as a group not only don’t get what we pay for, we get precisely what we don’t pay for. So if we pay for nothing, we get everything” — John Bogle

In this quote, John Bogle is criticizing high fees and expenses in the mutual fund industry. By stating that collectively “we investors as a group not only don’t get what we pay for, we get precisely what we don’t pay for”, Bogle implies that high costs do not translate to better returns.

He suggests that if investors paid little to no fees (“if we pay for nothing”), they would achieve comparable or better returns since less money would be siphoned off to fees before returns are realized.

The interpretation is that Bogle views high fees as providing no real value to investors’ bottom lines, since performance is more dependent on market forces than on what fund managers are paid.

Bogle’s perspective conveys that high costs are essentially a drag on returns without buying investors any additional benefits. The overall message is that Bogle presents fees more as a subtraction from investors’ wealth accumulation rather than a justifiable expense for actively managed services.

Birthday May 8, 1929 – Death: January 16, 2019

John Bogle: Get a Life Outside Finance

John Bogle Money Quote saying investments shouldn’t be actively managed, but rather should be long term. John Bogle said:
 

 

“Own an index fund, get a life outside of finance, and relax” — John Bogle

In this quote, John Bogle seems to be advising investors to take a simple, low-cost approach to their portfolio. By recommending they “own an index fund”, Bogle is suggesting passively investing in a broad market fund that tracks the overall stock market, rather than trying to pick individual stocks or actively managed mutual funds. His additional advice to “get a life outside of finance, and relax” implies index funds require little maintenance since they aim to match the market return.

The best interpretation is that Bogle believed indexing was a stress-free way for average investors to achieve adequate returns without excessive effort or concern over short-term fluctuations in the market. This quote encapsulates his advocacy for accessible, affordable investment options that allow people to focus more on enjoying their lives than obsessing over money.

Birthday May 8, 1929 – Death: January 16, 2019