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.
Interpretation
Encourage individuals to pursue their own paths and improve upon existing standards.
John C. Bogle emphasizes the importance of personal journey and self-discovery for young people. Rather than simply mimicking the experiences or successes of others, he advocates for following one's own aspirations and striving to enhance whatever field they choose to enter, particularly in the realm of investment. This reflects a broader philosophy of authenticity and improvement in personal and professional endeavors.
In practice
In a graduation speech, one might share this quote to inspire young graduates to forge their own paths.
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.
The Vanguard Experiment was designed to prove that mutual funds could operate independently, and do so in a manner that would directly benefit their shareholders.
I have walked that long road to freedom. I have tried not to falter; I have made missteps along the way. But I have discovered the secret that after climbing a great hill, one only finds that there are many more hills to climb. I have taken a moment here to rest, to steal a view of the glorious vista that surrounds me, to look back on the distance I have come. But I can only rest for a moment, for with freedom come responsibilities, and I dare not linger, for my long walk is not ended.
Faced with information overload, we have no alternative but pattern-recognition.
At one point, as Samuel urges Adam to raise his boys well regardless of the blood that might be in them, Adam tells him, "You can't make a race horse of a pig." Samuel replies, "No, but you can make a very fast pig.
There are different stages when you fly. The first stage is the dollhouse effect, seeing everything on Earth like it's a model. Suddenly, all of your concerns seem very small.
If we treasure our own experience and regard it as real, we must also treasure other people's experience.
The secret of genius is to carry the spirit of the child into old age, which mean never losing your enthusiasm.
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