Jack Bogle’s Investment Rules


Pioneer founder Jack Bogle died 3 years ago today. In 2016, I had the pleasure of interviewing him in his office Master of Business.

Bogle advocates an investment approach defined by simplicity and common sense.his book Clash of Cultures: Investing and Speculating There are 10 rules in Chapter 9, they summarize Bogle’s philosophy as:

investment and speculation
1. Remember regression to the mean
2. Time is your friend, impulse is your enemy
3. Buy and hold
4. Have realistic expectations: bagels and donuts
5. Forget needles, buy haystacks
6. Minimize dealer trade-offs
7. No risk-averse
8. Beware of fighting the last war
9. The hedgehog beats the fox
10. Follow through

Bogle details each of these 10 rules, with detailed explained here. You can also learn more at John C. Bogle, or in Bogleheads website.

Some others have tried to reduce it to the most basic investment rules, including Bogleheads and Wikipedia:

Bogle rule
1. Choose low-cost funds
2. Carefully consider increased consulting fees
3. Don’t overestimate past fund performance
4. Use past performance to determine consistency and risk
5. Beware of stars (like star mutual fund managers)
6. Pay attention to asset size
7. Don’t have too much money
8. Buy your fund portfolio — and hold it

Don’t underestimate their simple power – it’s a lot more subtle than at first glance. For many people, it’s a lot harder than you might think.

All our previous rule sets can be find here.

Before:
MiB: Jack Bogle on Indexing (March 14, 2016)

Three insights from Jack Bogle January 17, 2019 (Bloomberg)

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