The Clash of the Cultures reader Ý Speculation read ☆ goproled

text The Clash of the Cultures

The Clash of the Cultures reader Ý Speculation read ☆ goproled õ ✯ [PDF] ❤ The Clash of the Cultures: Investment vs. Speculation By John C Bogle ✼ – Recommended Reading by Warren Buffet in his March 2013 Letter to Shareholders How speculation has come to dominate Riginal concept of long term investing He also presents a first hand history of Wellington Fund a real world case study on the success of investment and the failure of speculation The book concludes with ten simple rules that will help investors meet their financial goals Here he presents a common sense strategy that may not be the best strategy ever devised But the number of strategies that are worse is infiniteThe Clash of the Cultures Investment vs Speculation completes the trilogy of best selling books beginning with Bogle on Investing The First 50 Years 2001 and Don't Count on It 2011 Whether you are new to investing or a veteran this should be a must read Indeed the take aways are very simple If you want to succeed in investing invest in index funds and hold them long term Bogle eschews specialty investing funds or euities other than broad market index funds and he eschews speculation even So in theory one could take a pass on reading the book and walk away with this advice which actually has been around foreverfor free But that's not the purpose of the book What the book does is explain in incredibly persuasive detail WHY Bogle believes what he does and why his approach makes sense Unless you understand the realities of why his approach is preferable then it is unlikely you will seriously consider his adviceIndeed the book does have some shortfalls Probably the most egregious shortfall is one that is common in virtually every how to or self improvement book failure to kick the readers in the butt and place some of the blame for their problems on themselves Have you ever read a psychology self improvement book that told the readers they were screwed up and that the problems they had were their own fault? Of course not You don't want to get your readers angry even though this is what they really need to hear In Clash of Cultures Bogle NEVER blames individual investors for their problems ie stock market losses He blames everyone else possible Congress the judiciary public accountants the press security analysts corporate directors fund managers and so on If you operate under the assumption that your problems are everyone else's fault then you end up in victim mode and you wait around for the other people to decide to become honest and nice so that your life can change It ain't gonna happen If you want to solve your problems you have to take action yourself and that involves placing the blame suarely where it belongs on yourself As the old saying goes When you point the finger of blame at someone else there are three other fingers pointed right back at you In other words one shortcoming of this book is Bogle's reticence to make it clear that investors are responsible for themselves More specifically they can't expect to succeed unless and until they educate themselves Handing money over to other people to manage for you and then sitting back fat dumb and lazy hoping the other people will do the right thing with your money and have your best interests at heart is a prescription for disasterAnother shortcoming of the book is that given Bogle's 61 years in the mutual fund industry he has a fondness for it over other investment vehicles such as ETFs He doesn't bash ETFs He simply points out the fact that people who own mutual funds tend to hold them for long periods of time while people who own the same basket of stocks in ETFs tend to buy and sell on a regular basis This isn't a slam against ETFs It is a slam against the people who own the ETFs In other words there is no reuirement that if you purchase an ETF you have to sell it uickly Bogle does admit but glosses over this fact very uickly in only a couple of phrases in a couple of sentences in the book as uickly as he can that ETFs can be less expensive than mutual funds in terms of fees As such logic seems to dictate that if you want to purchase a broad market fund and are willing to hold it for a long time then an ETF makes much sense than a mutual fund simply because the ETF will have lower fees in the long run Again though Bogle doesn't come right out and emphasize thisOther than these two shortcomings letting individual investors off the hook and not actively publicizing the lower costs of ETFs this book is monumental If you currently invest with a belief that you are smart enough to beat the market long term andor someone who prefers speculation in and out buying and selling to investment buy and hold reading this book might actually change your mind and make you money in the long run

John C Bogle ç Speculation epub

Tor's most active participants In The Clash of the Cultures he urges a return to the common sense principles of long term investing Provocative and refreshingly candid this book discusses Mr Bogle's views on the changing culture in the mutual fund industry how speculation has invaded our national retirement system the failure of our institutional money managers to effectively participate in corporate governance and the need for a federal standard of fiduciary duty Mr Bogle recounts the history of the index mutual fund how he created it and how exchange traded index funds have altered its o I spent 8 years in the securities business as a salesman and then 13 years as a trader using house money As a salesman I cannot tell you the number of players customers that got wiped clean based on my advice As a trader I was directly part of the casino effectively using the house favoring odds to scrape off a fair amount of money from the players As a young person in the business as a salesman I was operating under the belief that I was assisting people in making investments but actually I had them putting all their chips money on black number 33 longlong shots that rarely if ever paid off Jack Bogle has made it crystal clear that 99% of the''securities business is nothing buy a giant casino The old joke Where are the customers yachts?finds its factual basis in this book What an eye opener

ebook ê Investment vs ç John C Bogle

The Clash of the Cultures Investment vs SpeculationRecommended Reading by Warren Buffet in his March 2013 Letter to Shareholders How speculation has come to dominate investment a hard hitting look from the creator of the first index fund Over the course of his sixty year career in the mutual fund industry Vanguard Group founder John C Bogle has witnessed a massive shift in the culture of the financial sector The prudent value adding culture of long term investment has been crowded out by an aggressive value destroying culture of short term speculation Mr Bogle has not been merely an eye witness to these changes but one of the financial sec I was already a life long fan of Jack Bogle and his low cost index funds I have probably read about 4 of his previous books Since I was already familiar with Jack's work there were few surprises for me in this bookAs William Bernstein pointed out in his review the large Wall Street investment firms have been a failure in terms of helping the average investor achieve his financial goals Billions yes billions of dollars are paid out in Wall Street bonuses every year primarily for figuring out how to sell people and firms investments they should not buy Just read a few books by people that worked on wall street for a few yearsand you will get the idea Many firms are legally bound not to buy investments that have too high of credit risk Wall Street employees spend their time figuring out how to get poor investments rated as excellent so they can sell themSomeone recently pointed out the only innovation from Wall Street or the big banks in the last 25 years that has actually helped investors is the ATM I would argue that Jack Bogle inventing the index fund was the best thing that happened to investors in the 20th centuryIf you have not read any of Jack Bogle's books this is a good one to read I found it encouraging that index fund stock investing now is about 28% of all money invested in stock mutual funds Hopefully this percentage continues to trend higher as people figure out that Wall Street is not your friend