I would always advise young people to follow their star - not my star. They have to live their own life. If they decide they want to go into the investment business, do it, but make it a better business than it is today.
John C. BogleRead
Our financial system is driven by a giant marketing machine in which the interests of sellers directly conflict with the interests of buyers.
Interpretation
The financial market often operates in a way that prioritizes sellers' interests over those of buyers.
In this quote, John C. Bogle highlights the inherent conflict within financial systems where the motivations of sellers, who seek profit, can clash with the needs and interests of buyers, who are looking for value and security. Bogle suggests that this imbalance is exacerbated by marketing strategies that aim to manipulate buyer behavior for the benefit of sellers, ultimately leading to a less favorable market environment for consumers.
In practice
This quote can be used in a presentation on consumer rights in financial markets.
I would always advise young people to follow their star - not my star. They have to live their own life. If they decide they want to go into the investment business, do it, but make it a better business than it is today.
When our financial system - essentially our money managers, marketers of investment products and stockbrokers - put up zero percent of the capital and assume zero percent of the risk yet receive fully 80% of the return, something has gone terribly wrong in our financial system.
Entrepreneurs or international conglomerateurs, or large financial institutions buy or create mutual fund management companies to create a return on their own capital. It's capitalism at work, where the rewards tend to go to the managers rather than the investors.
Net return is simply the gross return of your investment portfolio less the costs you incur. Keep your investment expenses low, for the tyranny of compounding costs can devastate the miracle of compounding returns.
Investing is a virtuous habit best started as early as possible.
Wise investors won't try to outsmart the market.
A single currency entails a fixed interest rate, which means countries can't manage their own currency to suit their own needs. You need a variety of institutions to help nations for which the policies aren't well suited. Europe introduced the euro without providing those structures.
It is better that a man should tyrannize over his bank balance than over his fellow-citizens and whilst the former is sometimes denounced as being but a means to the latter, sometimes at least it is an alternative.
We have always known that heedless self-interest was bad morals; we know now that it is bad economics. Out of the collapse of a prosperity whose builders boasted their practicality has come the conviction that in the long run economic morality pays.
There should be no unemployment. There is large percentage of labor now which cannot make a living because wages are not high enough. That is industry's 2nd job. 1st job is to make good product. 2nd pay a good wage.
There is always some chance of recession in any year. But the evidence suggests that expansions don't die of old age.
Capitalism is not an 'ism.' It is closer to being the opposite of an 'ism,' because it is simply the freedom of ordinary people to make whatever economic transactions they can mutually agree to.
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