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Vanguard's Jack Bogle Shares His 6 Best Investing Secrets

Vanguard's Jack Bogle Shares His 6 Best Investing Secrets
Jack Bogle (Vanguard)

By    |   Friday, 07 April 2017 07:40 AM

Vanguard founder Jack Bogle has a half-dozen pearls of wisdom to unlock the secrets of profitable investing and a successful life.

And you'd be wise to listen to such advice from the 87-year-old founder of Vanguard Group.


Because one of the most respected investment gurus of all time recently cited Bogle as his hero.

Billionaire investor Warren Buffett praised Bogle in his annual letter to Berkshire Hathaway Inc. shareholders. 

The pioneer of indexing was once an outcast in the investment world as he eschewed riches to provide real value to American investors, Buffett wrote.

“In his early years, Jack was frequently mocked by the investment-management industry,” Buffett wrote. “Today, however, he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me.”

Bogle started the indexing revolution for retail investors in 1976 when he launched the Vanguard 500 Index Fund. The fund, which just passed its 40th anniversary, had $205 billion in assets as of Aug. 31, Bloomberg reported.

Here are the six tips from Buffett's hero recently shared with CNBC:

  • Have tough risk tolerance if you're going to be an entrepreneur. "Being an entrepreneur is not for the faint of heart. It is a high-risk, high-reward proposition. While we would typically encourage young people to start saving for the future as early as possible, it's unlikely that a budding entrepreneur will be able to do so," he said. "The entrepreneur will need every bit of capital available for the business, which will likely crowd out personal savings. This may not be prudent in the traditional sense, but it is necessary. The entrepreneur's business can be thought of as a highly risky, concentrated stock position. If it doesn't work out, you can be wiped out. But if it does work, the rewards can be ‘beyond the dreams of avarice,’” he wrote.
  • "Work hard as hell. It doesn't hurt," he said. "That was the secret for Alexander Hamilton," he said. "That was the secret for me."
  • Find a company that is the "right" company, even if it is the "wrong" job for you. "Once you get in the door, it will be a much wider opportunity," he said. "The world of technology has totally altered career paths," he said, by making it easier for people to start companies and for companies to replace workers.
  • Find a routine for your investing and stick to it. Bogle suggests sticking to low-fee index funds. Bogle suggested setting yourself up in a fund that is 75 percent invested in stocks — "get the stock market's return" — he said. After you're making regular contributions: "Never do anything. Don't open your damn statements. Don't peek. … These are the relentless rules of humble arithmetic."
  • Don't hire a financial adviser. "Unless you need a financial advisor to help you get started in that routine, you probably don't need a financial advisor at all," he said. "It's a personal choice. If you think you need a helping hand, then you do."
  • Above all: Stay in the game. Never give up and keep plugging away, no matter what.

(Newsmax wire services contributed to this report).

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Jack Bogle has a half-dozen pearls of wisdom to unlock the secrets of profitable investing and a successful life.
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Friday, 07 April 2017 07:40 AM
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