Bogle’s Straightforward Formula for Estimating Future Stock Price Returns

The Wall Street Journal’s Money Beat column highlights the value of simplicity in investment prediction models. Profiling work by John C. Bogle, founder of Vanguard Group, that draws on historical data, the piece highlights his three-factor formula for determining the “sources of return.” These are: Starting yield (annual dividends divided by stock price) Earnings growth […]

Bogle: Stocks Priced For 6% To 7% Returns

Legendary Vanguard Founder Jack Bogle says not to worry about short-term issues like the recent emerging market turmoil. Over the long haul, it’s the performance of companies that will drive stocks, he says, and he thinks corporate growth is indicating stocks should grow 6% to 7% annually. “In the long-term … all value [is] created […]

Bogle: Don’t Rebalance — If You Can Stand It

Rebalancing the assets in your portfolio back to a target weight is an often-cited common sense tenet of investing. But legendary Vanguard Founder Jack Bogle says you might want to think twice about doing so. Boggle tells Money magazine that “If you can ignore market fluctuations along the way, it’s better not to rebalance, since […]

Simple Advice From An Investing Legend

Vanguard Founder Jack Bogle has some simple advice for investors: Invest — and don’t peek. “Nothing,” Bogle tells Canada’s Globe and Mail when asked what keeps him awake at night. “Just invest, and don’t peek. Don’t open your retirement plan contribution statements every quarter. Put in money regularly, and when you retire 40 or 50 years […]

Favorite Charts from Bogle, Wien, and Others

Business Insider recently asked a number of strategists to discuss their “favorite charts of 2012,” and some of the gurus participating offered some very interesting data.  Byron Wien of Blackstone Partners, for example, provided a chart that showed the pace at which the money supply has expanded vs. the rate at which gross domestic product […]