January 27

 

Today’s Letter f rom Grandma Sylvia

 

 

Dear Reader,

How do any of us find signposts that help us with our life choices?  Jack Bogle left clear signposts and forged new paths where there were none.

The company he founded, Vanguard, embodies much of this thinking. More of his philosophy is in the many books he’s written.  From his writings.  I’ve selected a few of the ideas I like the best.

 

Learn every day, but especially from the experiences of others. It’s cheaper!

Rely on the ordinary virtues that intelligent, balanced human beings have relied on for centuries: common sense, thrift, realistic expectations, patience, and perseverance.

 

The courage to press on regardless – regardless of whether we face calm seas or rough seas, and especially when the market storms howl around us – is the quintessential attribute of the successful investor.

 

The historical data support one conclusion with unusual force: To invest with success, you must be a long-term investor.

 

It is character, not numbers, that make the world go ‘round.

 

The two greatest enemies of the equity fund investor are expenses and emotions.

 

The grim irony of investing, then, is that we investors as a group not only don’t get what we pay for, we get precisely what we don’t pay for. So if we pay for nothing, we get everything.

 

When there are multiple solutions to a problem, choose the simplest one.

 

Time is your friend; impulse is your enemy.

Owning the stock market over the long term is a winner’s game, but attempting to beat the market is a loser’s game.

 

Don’t look for the needle in the haystack. Buy the haystack.

 

*****

 

Now, I’m simply going to sit outside and think about how I can best use these ideas in my own investing.

 

Grandma Sylvia