Jack Bogle

Written By Owen Hecker
 
“Don’t do something, just stand there.”
— August 2011, CNBC Interview
 

This blog starts with a short but powerful quote from Jack Bogle—not by coincidence. His insights and teachings will appear here in many places because I think they are helpful and time-tested. 

In this quote, Jack Bogle turns the popular saying “Don’t just stand there, do something” on its head, and he does so for good reason. For context, multiple studies have shown, and it is by now pretty broadly understood, that investors are oftentimes their worst enemy and that excessive trading reduces returns. See for example the Dalbar Study here.

In line with his overall “Buy and hold” philosophy, in this quote, Jack Bogle encourages us to as he often says “STAY THE COURSE”.

The ups and downs of the markets -- or seemingly compelling stories told by advisors or the media – may tempt us to trade upon the latest news, but as the data shows, we often get that wrong, given that the market knows more than we do and is very efficient. So Jack Bogle, via this short quote, permits us and encourages us not to act and instead stick to our (hopefully sound) asset allocation. 

Staying disciplined and sticking to my investment strategy even during times of turbulence and Siren Songs is what I take away the most from this quote. And given how simple but powerful that message is, it deserves to be the first reflection in this blog.

 
 
 
Owen Hecker
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