Via Jack Bogle on Marketwatch:
“Get out of the casino, own Corporate America and hold it forever,” Bogle said during “The Big Interview” on MoneyLife with Chuck Jaffe. “No trading, no nothing. You don’t need to trade; you don’t need to worry about the market. To protect yourself from the bumps the stock market will scare you with – even though it shouldn’t scare you because there have been bumps in the market since the beginning of time – have a bond position to go along with your stock position, and have your bond position [the proportion of your assets in bonds] … have something to do with your age.”
First of all, Jack Bogle is a savior for many small investors who have been herded over the cliff by the Myth of Warren Buffett. He’s a genius and a great advocate for this type of investing approach, but I do think it’s humorous how, at the bottom of the market, everyone was saying buy and hold is dead. Early 2009 was actually one of the few times where I went out on a limb and defended buy and hold, but I still find it inappropriate to tout buy and hold strategies as some sort of holy grail. There are no holy grails in the investment world. There are no free lunches. There is no “one size fits all” approach that is going to always work. It just doesn’t exist. And the next time the world seems like it’s about to end and the market is plunging you’ll read about how certain strategies protected investors from the losses and all that….So goes the cycle of fear and greed….
Read the full article here.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.