Summary of John C. Bogle's Enough

Everest Media

Description

Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 The financial system takes from society, and the more it takes, the less the investor earns. The more the financial system takes from you, the less you have. The investor feeds at the bottom of the food chain of investing.
#2 The financial sector, which was booming at the time, began to crumble in 2007. The industry was led by Citigroup and investment banks Merrill Lynch and Bear Stearns, who created risky, reckless, and costly debt instruments.
#3 The financial sector has dominated the American economy and stock market, and has been responsible for a large portion of the SP 500 company’s earnings. The clients of the banking firms have lost billions of dollars in risky debt obligations, yet investment banking executives continue to be paid at high levels.
#4 The recent financial crisis has shown the compensation of three well-publicized financial sector CEOs who failed their clients and their shareholders. Charles Prince, CEO of Citigroup, took office in October 2003, with Citigroup stock selling at $47 per share. While the bank did well for a few more years, it created a highly risky investment portfolio that fell to pieces within five years.

Sujets

• Général
• Finance

Informations

• Publié par: Everest Media LLC
• Date de parution: 05 avril 2022
• Nombre de lectures: 2
• EAN13: 9781669379058
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Insights on John C. Bogle's Enough
Contents Insights from Chapter 1 Insights from Chapter 2 Insights from Chapter 3 Insights from Chapter 4
Insights from Chapter 1

#1

The financial system takes from society, and the more it takes, the less the investor earns. The more the financial system takes from you, the less you have. The investor feeds at the bottom of the food chain of investing.

#2

The financial sector, which was booming at the time, began to crumble in 2007. The industry was led by Citigroup and investment banks Merrill Lynch and Bear Stearns, who created risky, reckless, and costly debt instruments.

#3

The financial sector has dominated the American economy and stock market, and has been responsible for a large portion of the SP 500 company’s earnings. The clients of the banking firms have lost billions of dollars in risky debt obligations, yet investment banking executives continue to be paid at high levels.

#4

The recent financial crisis has shown the compensation of three well-publicized financial sector CEOs who failed their clients and their shareholders. Charles Prince, CEO of Citigroup, took office in October 2003, with Citigroup stock selling at $47 per share. While the bank did well for a few more years, it created a highly risky investment portfolio that fell to pieces within five years.

#5

The wealth of hedge fund managers is incomparable to that of financial kings, but their success is still problematic. The asymmetry of their wealth is unlikable because it lacks fundamental equity. Managers on the winning side of speculation earn big; but the losers don’t lose big.

#6

The flood of young brainpower into the financial sector has enflamed the imaginations of many graduates of business schools, but the cost of the services provided by their firms exceeds the value they create.

#7

The costs of investing in stocks are significant. If we assume that only 1. 5 percent is paid by taxable investors to cover income taxes and capital gain taxes on that return, the after-tax rate of return would fall to 7. 5 percent, and the final wealth accumulation would plummet to $37,000.

#8

I have always followed the principles of balance, diversification, and focus on the long term. I was a money manager for 27 years, and during that time, I invested in the manner prescribed by Graham.

#9

The costs associated with the American financial system are enormous. Mutual funds represent just one part of these costs, which are also paid by investors in other parts of the financial system.

#10

The fact that investor returns lag market returns is not a debate, but it is often argued that our financial system adds value to society because of the other benefits it brings to investors. However, this claim belies the reality of our system, in which the system does not operate under classical free market conditions.

#11

The financial economy subtracts from the value created by the productive sectors of our economy. It is essential that we reform the financial system in the public interest and in the interest of investors.

#12

Investing is all about the long-term ownership of businesses. Speculation, on the other hand, is about the short-term trading of financial instruments focused on the belief that their prices will rise.

#13

The stock market is a voting machine in the short run, but a weighing machine in the long run. As a group, investors capture Berkshire’s return, but as a group, speculators do not.

#14

The long-term returns of stocks have depended on the reality of the relatively predictable investment returns earned by business.