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
It seems to me - particularly for these retirement-plan investors, the vast majority of whom are not particularly financially sophisticated - by far the best way is to invest in index funds.
Interpretation
What this quote means
Investing in index funds is a simple and effective strategy for those lacking financial expertise.
John C. Bogle, the founder of Vanguard Group, emphasizes that for the average retirement-plan investor, who may not have a deep understanding of financial markets, investing in index funds is likely the most prudent choice. Index funds provide broad market exposure, lower costs, and relatively consistent returns, making them accessible and beneficial for everyday investors.
Themes
InvestmentIndex FundsRetirementFinanceSimplicity
In practice
Example use cases
During a financial literacy workshop, this quote can illustrate the importance of simple investment strategies.
More from John C. Bogle
All quotes →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.
John C. BogleRead
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.
John C. BogleRead
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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