Talking Stocks 2.0

[904VT]

Originally Posted by SMD

So many on here would benefit from reading and adopting bogle’s principles.

Jack actually destroyed modern markets and we are all worse off because of his philosophy that was forced into the market. The index products have caused more volatility in the broader market and more dislocation from fundamentals. Those indices are cap weight so they force investors to buy high and sell low which we all know is not ideal. The old philosophies of Benjamin Graham would be better reading. Bogle’s forced philosophy of extreme fee pressure has made investors worse off by crowding out many competitors. Meanwhile, critiquing 10 basis points at the expense of active management that can give improved risk management. As Apple grows the index buys more and a higher price. When it goes down, it sells. Constantly buying high and selling low. Bogle fooled a lot of investors with his garbage.

[FLGatorM5]

Originally Posted by 904VT

Jack actually destroyed modern markets and we are all worse off because of his philosophy that was forced into the market. The index products have caused more volatility in the broader market and more dislocation from fundamentals. Those indices are cap weight so they force investors to buy high and sell low which we all know is not ideal. The old philosophies of Benjamin Graham would be better reading. Bogle’s forced philosophy of extreme fee pressure has made investors worse off by crowding out many competitors. Meanwhile, critiquing 10 basis points at the expense of active management that can give improved risk management. As Apple grows the index buys more and a higher price. When it goes down, it sells. Constantly buying high and selling low. Bogle fooled a lot of investors with his garbage.

Why not tell us what you really think?

I don’t disagree, but remember the pendulum swings both ways. I think many have already moved beyond his over simplified view…thinking SMAs with focused strategies, tax management, etc.

Increased competition and price pressure? good (over time).
Being the cheapest guy on the block (guess who)? poor interface, crumbling cyber security, lack of employee retention…

[Krash]

Originally Posted by 904VT

Jack actually destroyed modern markets and we are all worse off because of his philosophy that was forced into the market. The index products have caused more volatility in the broader market and more dislocation from fundamentals. Those indices are cap weight so they force investors to buy high and sell low which we all know is not ideal. The old philosophies of Benjamin Graham would be better reading. Bogle’s forced philosophy of extreme fee pressure has made investors worse off by crowding out many competitors. Meanwhile, critiquing 10 basis points at the expense of active management that can give improved risk management. As Apple grows the index buys more and a higher price. When it goes down, it sells. Constantly buying high and selling low. Bogle fooled a lot of investors with his garbage.

I never did much research into this but I often wonder if these large index funds are good or bad for investors. Same with many of these ETFs. I feel like they have too much influence on overall market valuations. If lots of people suddenly bail on them, then it drives prices down more than it should. But again, I never really researched that, so maybe not. Plus, I’m not exactly doing bad, so I have nothing to complain about.


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