Jack Bogle, the founder of the Vanguard Group is known as an index mutual fund pioneer. His strategies are intelligent and helpful. He has authored many books which talks about some useful investing lessons. Here are some of the best investing lessons given by Jack Bogle which can help plenty of people.
1. Jack Bogle said that we must be careful of crowded trades and fad sectors. He said that according to the reversion to mean formula, what rises up can also fall down.
2. The second lesson given by Jack Bogle is that impulse is a foe and time is a friend. If we always act on our impulse, then we cannot make good use of time.
3. The third lesson that we can learn from Bogle is that we must not make decisions of rash investment as they do not lead to anything profitable. It is essential to buy right and hold it firmly.
4. Jack Bogle said that we should always keep realistic expectations. When we keep unreasonable expectations, we might end up taking huge risks which can be fatal.
5. The fifth lesson that we can learn from Jack Bogle is that buying the entire market implies lesser risks than buying some parts of it. A broad-based strategy is likely to reward you more.
6. The sixth lesson given by Jack Bogle is that there is nothing called “zero-risk” when you are investing in something. We can only learn to be smart and intelligent enough to minimize the risk.
7. Jack Bogle said that we must not have this firm belief that the investments which worked wonderfully in the past would again work miraculously. The reality is hardly so. Investments which were a huge success can also fail miserably in the future. Sticking to the same investments doesn’t make anyone a winner.
8. The eighth lesson given by Jack Bogle is that it is essential to be defensive. It is fine to be a predator if we are investing in something rather than playing the role of a victim. Being an investor, it is crucial to make all efforts so that we don’t get eaten up.
9. Jack Bogle said that there is no special formula or secret to invest. Since there is no such foolproof strategy, it is useless to look for special tips. We must trust our intuition and be cautious.
These 9 investing lessons given by Jack Bogle in his latest book “The Clash of the Cultures” can help us a lot when we are thinking about making an investment. In order to be successful, we must follow these lessons.