19 Quotes from The Clash of the Cultures book by John C. Bogle

The Clash of the Cultures

Hello. This post is a collection of 19 quotes from the book - The Clash of the Cultures by John C. Bogle. I hope you enjoy reading these quotes.

The Clash of the Cultures Quotes

If beating the market is a zero-sum game before costs, it is a loser’s game after costs are deducted. How often we forget the power of these "relentless rules of humble arithmetic", when we bet against one another, day after day—inevitably, to no avail—in the stock market.

It is surely one of the great paradoxes of the day that the largest financial rewards in our nation are received by an investment community that subtracts value from its clients, with far smaller rewards received by a business community that adds value to society.

We’ve had too much crime and not enough punishment in our financial sector. I’d like to see far harsher penalties for white-collar criminals who abuse their clients’ trust.

We must seek an investment sector in which a culture of stewardship and longer-term thinking dominates a culture of speculation, short-term trading, salesmanship, and marketing.

Yes, stock prices correlate nicely with business results, but only over the very long run. In the short term, the correlation seems random at best. Simply put, stock prices are a flawed measure of corporate performance.

I love the mutual fund industry. But I have a lover’s quarrel with the industry to which my long career has been dedicated. I simply want us to live up to our highest potential to fulfill our fiduciary duty to fund investors.

The concept of investing for a lifetime and focusing largely on asset allocation and diversification has gotten lost in the noise of short-term, even daily and sometimes minute-by-minute movements of the volatile stock market. I can only restate my warning that “the stock market is a giant distraction from the business of investing.”

Sometimes the markets are highly efficient, sometimes wildly inefficient, and it’s not easy to know the difference.

Buy the market and hold it forever (or at least until you retire). Don’t worry about portfolio managers who will come and go, and don’t speculate on which manager may be lucky enough or smart enough to outperform the market for a time. Own an index fund, get a life outside of finance, and relax.

Never forget either the magic of long-term compounding of returns, nor the tyranny of long-term compounding of costs.

Selecting your fund for tomorrow by picking a winner from yesterday is an exercise fraught with peril. No, the past is not prologue.

Long-term value, not short-term price, rules the world.

Never forget that time is your friend. Take advantage of it, and enjoy the miracle that is compound interest.

One of the greatest sins of investing is to be captivated by the siren song of the market, which can lure you into buying stocks when they are soaring and into selling stocks when they are plunging. Impulses like these can destroy even the best of portfolios.

In mutual funds performance comes and goes, but expenses go on forever.

You should not ignore the past, but neither should you assume that a particular cyclical trend will last forever. None does. Just because some investors insist on “fighting the last war,” you don’t need to do so yourself. It doesn’t work for very long.

The index fund wins because its concept is both priceless and price-less.

The secret to investing is that there is no secret. There is only the majesty of simplicity.

Investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense.

Quotes by - Deepak Kundu

Hello, I am Deepak Kundu, an avid book reader and quotes collector. I hope you enjoyed reading the above quotes from The Clash of the Cultures book by John C. Bogle.