10 Questions for John Bogle

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Flaccidsteele
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Re: 10 Questions for John Bogle

Post by Flaccidsteele » 16 Oct 2015 10:11

This was my only issue with ETFs, but I think that my temperament would allow me to do ok with ETFs since I'm too lazy to even trade individual stocks.

I agree with foreign investing. I can't rationalize the benefit.

Jack Bogle: Trump Is Wrong, ETFs Are Bogus and Foreign Investing Is Useless
Bogle vigorously defended the index fund, which was designed to buy stocks in proportion to their market capitalization, not according to what a manager thinks will do well. But he cautioned that index mutual funds were much safer than ETFs, which also track stock indexes. Unlike mutual funds, ETFs can be bought and sold like stocks all day long, which encourages investors to speculate instead of investing for the long term.

...

"A lot of people will say that shows how stupid I am," Bogle remarked about his decision to pass on ETFs, but "I have no regrets about it."

"Exchange-trade funds are fine, just so long as you don't trade them," Bogle said. If you buy them, hold them for the Warren Buffett-endorsed term: forever.
Retired @ 40 after reading Munger/Buffett. I avoided a fragile retirement by avoiding conventional volatility management (diversification, re-balancing and asset-allocation). "Put 90% in a very low-cost S&P 500 index fund...the long-term results will be superior" - Warren Buffett

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