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
If the fluctuations in your investment portfolio are reduced, the impact of emotions and behavior on your account is also reduced.
Interpretation
What this quote means
Reducing volatility in investments helps to minimize emotional reactions and irrational behaviors.
John C. Bogle's quote emphasizes the importance of managing the volatility of an investment portfolio. When fluctuations are minimized, investors are less likely to be swayed by emotions, which can lead to rash decisions. By focusing on stable investments, one can maintain a more rational approach to managing their financial assets.
Themes
InvestmentPortfolioVolatilityEmotionsBehavior
In practice
Example use cases
In a finance seminar discussing the impacts of market fluctuations.
More from John C. Bogle
All quotes βWhen 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.
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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.
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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.
John C. BogleRead
Investing is a virtuous habit best started as early as possible.
John C. BogleRead
Wise investors won't try to outsmart the market.
John C. BogleRead
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