John Bogle Shares Thoughts on Professional and Business Values—Part 5

An essay by Vanguard founder John Bogle, published in a recent issue of the CFA Institute’s Financial Analysts Journal, offers insights and guidance concerning the need for balance between professional values and business values in the world of investing and finance. This is the last installment of our series outlining highlights of the essay. Bogle outlines some of the advice he has offered his clients over the years: Invest you must. Bogle says that the failure to earn a sufficient return is a bigger risk than short-term volatility in the market. Time is your friend. Start investing as early as […]

Jack Bogle Shares Thoughts on Professional and Business Values—Part 4

An essay by Vanguard founder Jack Bogle, published in a recent issue of the CFA Institute’s Financial Analysts Journal, offers insights and guidance concerning the need for balance between professional values and business values in the world of investing and finance. This is the fourth installment of a five-part series outlining highlights of the essay. Bogle outlines “characteristics and attitudes” that he has championed and nurtured over his 65-year career to maintain balance between his business and professional approach to investing: Develop competence: Bogle highlights the importance of education as well as the need to be “an aware citizen of […]

John Bogle Shares Thoughts on Professional and Business Values—Part 3

An essay by Vanguard founder John Bogle, published in a recent issue of the CFA Institute’s Financial Analysts Journal, offers insights and guidance concerning the need for balance between professional values and business values in the world of investing and finance. This is the third installment of a five-part series outlining highlights of the essay. Bogle uses the examples of Adam Smith and Benjamin Graham, trailblazers in professional investing, to illustrate the evolution of the industry: Smith, whose book Theory of Moral Sentiments in 1759, highlights the importance of prudence in business dealings: “The care of…the fortune…is considered as the […]

Bogle’s Rules of Success for the Everyday Investor, Plus Four Stocks that Make the Grade

In a recent article for Forbes, Validea CEO John Reese recounts some rules for investment outlined by Vanguard’s Jack Bogle in his 2012 book The Clash of the Cultures: Investment vs. Speculation, and how they apply to the everyday investor: Remember Reversion to the Mean: The theory in finance that, over time, a stock’s price will tend to move back to its average. “The trouble comes,” says Reese, “when investors try to predict when such a reversion will take place by timing the market.” Time is Your Friend, Impulse is Your Enemy: Reese cites the philosophy of Warren Buffett that […]

John Bogle Shares Thoughts on Professional and Business Values—Part 2

An essay by Vanguard founder John Bogle, published in a recent issue of the CFA Institute’s Financial Analysts Journal, offers insights and guidance concerning the need for balance between professional values and business values in the world of investing and finance. This is the second installment of a five-part series outlining highlights of the essay. These are some of the pressures that Bogle argues impedes the balance between profession and business: New technologies: The lower costs associated with today’s computer-driven securities trading as well as robo-advisor products “which use technology to make inroads into traditional methods of providing advice to […]