Jack Bogle’s Portfolio Core Principles
John ‘Jack’ Bogle was a legend in the financial industry. Founder and former CEO of Vanguard, and father of the index fund, Bogle was been especially outspoken against the abuses of the financial industry and made it his mission to provide inexpensive opportunities to the average investor. In 1999, Fortune named Bogle one of the four investment ‘Giants of the 20th century’ and in 2004 named him one the “100 Most Influential People in the World.” It’s an impressive resume to be sure, but Bogle himself was more focused on what he calls a “crusade to give investors a fair shake.”
Tony Robbins had the honor to sit with Jack Bogle and interview him in preparation of writing MONEY: Master the Game, digging deep on the problems and solutions of Wall Street. In this interview, Robbins asked Bogle for the set of principles he would leave to his children.
1. Asset allocation in accordance with your risk tolerance and your objectives
2. Diversify through low-cost index funds
3. Don’t trade!
Bogle added that as a “crude” benchmark, have as much bond funds as your age. For example, when he was in his 80s he had 40% of his portfolio in bonds. But a very young person could be 100% equities because if he or she took a 50% hit, their “human capital” would make up for it over the years.
