Whether you are interested in the FIRE community or just a regular investor looking to grow your investment portfolio, then sit tight and learn from one of the greatest investors of the 21st century.
John Bogle may have died almost two weeks ago, but his words of wisdom will always guide our hearts when it comes to investing.
Bet On Long-term:
Yes, John was a strong believer of anchoring towards the long term when it came to investing, as he stated that the fundamental return, the dividend yield drives the long term returns of the stocks market.
Go For Higher Percentage:
When you think about investments, you always want to go for a company that can offer you the highest percentage yield. John predicted up to a 5% return on index fund investments over the next decades. Obviously, you can only benefit from this if you decide to invest in index funds.
Control What You Can:
There are lots of uncertainties in this world but it is important to keep calm and stay in control of what you can, especially with your finances. This is one of the things Mr. Bogle and other financial gurus have talked about for years. Meaning that in order to get the most out of the financial market, you should invest your money in index funds as opposed to picking individual stocks since there is more stability in an index fund.
Avoid Stock Pickers:
Stock pickers are also known as fund managers. According to Bogle, you should stay as far away from them as you possibly can. They do not have your best interest at heart and will not be able to outperform the market as they claim to do.
Beware Of Fees:
A lot of people are happy to pay expensive fees to fund managers, especially when the market is doing well and they are seeing growth in their investments. But the downside to this is the enormous fees they still have to pay, when their investments are doing badly in the market.
So there you have it. I hope that these words from this investment legend gave you some sort of comfort on what to expect in the next couple of years and also how to go about setting up your investment portfolio. The world will miss you immensely John.