John ( Jack ) Bogle

“ Time is your friend; impulse is your enemy.”

“If you have trouble imaging a 20% loss in the stock market, you shouldn’t be in stocks.”

"When reward is at its pinnacle, risk is near at hand."

Personal Profile

Jack Bogle, born in Montclair, New Jersey, in 1929, graduated with a degree in economics from Princeton University in 1951. He learned the investment management business by working for financial advisor Wellington Management from 1951 to 1974 and founded Vanguard Group mutual fund company in 1974, becoming its CEO and chairman before retiring in 1999 from an active role in the company.

In "The Vanguard Experiment: John Bogle's Quest to Transform the Mutual Fund Industry" (1996), biographer Robert Slater describes Bogle's life as "evolutionary, iconoclastic and uncompromisingly committed to his founding principles of putting the interests of the investor first and constructively criticizing the fund industry for practices that run counter to low-cost, client-oriented mutual fund investing."

Bogle pioneered the no-load mutual fund and championed low-cost index investing for millions of investors. He created and introduced the first index fund, Vanguard 500, in 1976.
 In 1999, Fortune Magazine named Bogle one of the four “ Investment Giants” of the twentieth century.

Investment Style.

In simple terms, Jack Bogle’s investing philosophy advocates capturing market returns by investing in board-based index mutual funds that are characterized as no-load, low-cost, low-turnover and passively managed. He has consistently recommended that individual investors focus on the following themes:

1.       Minimizing the investment related costs and expenses.

2.       The productive economics of a long-term investment horizon.

3.       A reliance on rational analysis and an avoidance of emotions in the investment decision-making process.

4.       Use of index investing as an appropriate strategy for individual investors.

Publications

"Bogle On Mutual Funds" by John C. Bogle (1994)

"Common Sense On Mutual Funds: New Imperatives For The Intelligent Investor" by John C. Bogle (1999)

"John Bogle On Investing: The First 50 Years" by John C. Bogle (2000)

"The Little Book Of Common Sense Investing: The Only Way To Guarantee Your Fair Share Of Stock Market Returns" by John C. Bogle (2007)

"The Vanguard Experiment: John Bogle's Quest To Transform The Mutual Fund Industry" by Robert Slater (1996)

Benefit Of Investment in Stock Market

It’s very important to have savings along with various means to park it for growth. Here, the rate of returns plays the major role. It is notice that the rate of return from investment, in stock is comparatively higher but it also exposes us to the higher risks. So, the knowledge of market and which script to buy is necessary.
Years of experience has thought that one should not invest total capital into any one scheme or all the money in particular script ( not to put all the eggs in one basket ). In share market, capital should be invested in few scripts and not only one or two scripts.

Share market is one of the good avenues of investing and appreciating the capital. Here, common sense, Discipline and flexibility are the factors which are taken care of that can fetch handsome returns.
Many times, we hear that Mr. So and so has multiplied his capital 10 to 20 times in five to six years time. Along with, there are plenty of cases where people are ruined & have to sell off their houses too.

There are lots of factors affecting this market. We should be aware of these to ensure that we don’t turn up losers. The most dangerous style of trading is Day Trading which should be avoided ( Buy Day / Sell Today ). Next is dealing in futures which can also be dangerous Best and Safest is investment in A Group fundamentally sound Company’s script.

Note :
This does not means that you should not do Intraday / FNO but only do when you are well versed ( you know very well ) with the stock market.

Inflation

Inflation is the rate at which the cost of living increases and causes money to loose its value. In other words, it will not buy the same amount of good or a service in future as it does now or did in the past.

Why Investment is Necessary ?

In older days some where around 1920, when prices remained more or less constant, even if they did rise, It was just marginally so the impact on the cost of living hardly made any difference so

Savings and Investment

The money what is saved out of earning is called savings which are to meet future expenses. Instead of keeping the savings idle, it is advisable to use it to get good return on it in the future is known Investments.

The Easiest Way I Know to Make Money in Stocks

By DividendOpportunities.com

I call it the “apple tree” loophole. I think it’s one of the best ways I know to make money in the market, especially if you don’t want to fuss over your investments every day.

Understanding Signals of Market Crash & Sentiments of Retail Investors

You may have started seeing on lot of TV channels where people have started predicting new lower levels and the problem with such prediction is no one actually knows the bottom but are just making noise to get noticed.