Jack Bogle: How to Invest When Stock Prices Are at All-Time Highs

Jack (John) Bogle talks about how to invest during challenging times in the market. Bogle is the founder of Vanguard and is considered the father of the index fund. Index funds are a way for investors to diversify their invests in a low cost way. This speech originally took place in 1997.
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[@InvestorCenter]

Most popular Peter Lynch video this year. Check it out. 🔽 kzbin.info/www/bejne/kIKwcnh8gr-Va8U

[@shatadrooc1456]

Summary as per my understanding -- 1. A Meme is the basic unit of cultural evolution. 2. Invest you must as the real and biggest risk is of not investing. 3. Never think you know more than the market does. 4. Compound interest is a miracle and time is your friend. 5. Have rational expectations of future returns and be mentally prepared for market declines. 6. Your emotions can kill you and Impulse is your foe. 7. Rely on simplicity, simplicity above all. Have emphasis on controlling costs. 8. No matter what happens, stay the course.

[@vtheb1299]

I refuse to believe he's dead. He's living through his enormous wisdom, generosity, and creativity. He's been blessed by millions of people and I send him my blessing every time I open my bank account. The saint of Wall Street, the Robin Hood, the only person in the whole financial world who truly had my interest and yours in mind. The man who made financial liberation possible for the average Joe and Jane like me and you. My deepest respect for this man not only larger than life but larger than Wall Street.

[@danielerikschaller4775]

If only he would still be with us. People like Bogle are getting less and less and less... And I don't mean this investmentwise but rather as a human being!!... R.I.P. Jack

[@fabiolatgg]

What a comment. Best description of him EVER. Bravo my friend

[@inertiaforce7846]

He's alive in all the people he made wealthy. All those people remember him everyday.

[@veritas3179]

Totally agreed.

[@infinite_vortex]

I just turned 35, and finally, am starting to invest. I had zero financial knowledge really prior to this year, no fault but my own. Discovering Mr. Bogle makes me feel really good. Having watched hours of his talks on KZbin, and in the process of reading one of his books now, I am not kicking myself for not starting earlier. It's never too late to start, just be glad that you do start, and stay the course!

[@Bsb0830]

Sean Gallagher@ follow Bogle’s guide and you’ll always win

[@kokalti]

Another tool showed up to inflate the market further 😂

[@InvestorCenter]

You are still earlier than a lot of people because a lot of people never even start! Best of luck to you!

[@infinite_vortex]

@@InvestorCenter thank you!

[@bluegtturbo]

Just drip feed into a low cost index fund until you feel ready to nibble on some individual stocks, or just stick with the index fund(s)

[@walermos]

a person who knows about MEME 23 years before me,is a man I respect....

[@InvestorCenter]

😂

[@Theo-dj7vs]

He was there to oppose idea of global market yet here we are....china 2020...he was completely wrong

[@hhbattery4746]

@@frankelse745 Nope. China registed a positive growth last year. It seems that China released the virus in order to slow down its Western enemies

[@shatadrooc1456]

the meme part is really great

[@ArmyOf2Films]

Terence McKenna is another man who talks about memes like 30 plus years ago. Very different to this topic but still

[@patrickf2671]

In my rather simplistic opinion, legends like Jack, Warren Buffett and Charlie Munger seem to keep their entire approach to investing very simple and more or less follow the 5 rules and other principles listed by this great man.

[@InvestorCenter]

Very true!

[@fc872e1]

Had you put everything you had on Jack’s advice 25 years ago, you’d be in fantastic financial shape in 2020

[@InvestorCenter]

You would be a multi-millionaire

[@chrisf1600]

@@InvestorCenter we'd be fat, dumb and happy

[@InvestorCenter]

@@chrisf1600 definitely!

[@bendossantos783]

At 10:05 Timeless wisdom for investing- 5 rules- nuggets of wisdom for the investor. He manages to capture the most important principles of investing in a little over 2 minutes.

[@InvestorCenter]

💯

[@vtheb1299]

He didn't "manage" - he lived that wisdome and gave life to it so we can tap into it by creating the index mutual fund. This man was a saint. And unlike a few saints, he produced a real miracle that improves our lives profoundly.

[@TheIcelandicInvestor]

RIP to this investment legend.

[@InvestorCenter]

The world misses him

[@Theo-dj7vs]

@@InvestorCenter oh stop your bs pc...

[@simplydividends]

I have written down John Bogles 5 principles and each day I sit at my desk, they shall be a reminder.

[@InvestorCenter]

That’s a great idea!

[@simplydividends]

@Austin Harp watch the video and you'll see

[@twilightbin]

In 1997 the sp500 p/e ratio was 19. Ha! Many stocks today have price/sales (that's price/sales) of over 50!

[@InvestorCenter]

😅

[@sudarparakalan499]

you just nailed it.. but it took 3 more years for the crash.

[@colinsmith6250]

Interesting

[@tomlxyz]

The interest rates are lower which naturally increases asset prices

[@cmccarrick10]

cheap money balloons valuations

[@JAFAtuber]

wish you would put the date of this presentation as well as the date of the interview with Peter Lynch on PBS and the name of that interviewing show. Charlie whatever his name was...

[@abhishekmukherjee4857]

Respect for this man! He knows what he’s saying and also he recited the whole url of wired 😯 also he knows about memes 😂

[@InvestorCenter]

He was ahead of his time 😂

[@theYoutubeHandle]

he read from a paper not from memory.

[@abhishekmukherjee4857]

@@theKZbinHandle that’s not the point, people back then didn’t have air drop or copy link to phone feature, the fact that he read it out in a speech seemed extraordinary to me

[@motivational7531]

Love the meme definition 🤣

[@InvestorCenter]

I’m glad someone else noticed 😂

[@davidhaylett1810]

What a fantastic human being Jack was aside from his business acumen. RIP Jack

[@joseafalvel]

Besides being one a top-notch investor he knew about memes before memes.

[@InvestorCenter]

A true legend

[@shapeshfters]

Dawkins coined the term in 1976.

[@johnhinton8958]

What a gem of a video. Brilliant man with brilliant advice!

[@InvestorCenter]

Jack Bogle is one of the best!

[@mikeo2420]

He was red flagging the market even before several rounds of QE. The US was in the midst of a government surplus around the time of this presentation.

[@InvestorCenter]

Interesting!

[@rexmundi273]

QE is not money printing, Bogle knew that.

[@bikenraider99]

Keep emotions in check...still as true today as it was then

[@7sterling]

Anyone else get like 7 ads during this video? KZbin is forcing paid subscription on us.

[@deepnc]

Off late I too have the same feeling, 3-4 Ads for this short video. Even a 2 minutes video also has 1-2 Ads. No more free lunches, I suppose. Looks like, Google is trying to adapt the Netflix subscription model & youtube is the second most watched online streaming music & video service after Netflix. Maybe after some years youtube will be available only via subscription, no more freebies from Google :(

[@MrMadmaggot]

addblock

[@gianmariamalmesi4133]

We all know now, markets skyrocketed for more than two years before the bubble de inflated. Markets can be irrationals for much longer than we can be solvent (cit.)

[@InvestorCenter]

That’s one of the best investing quotes

[@Ikaros23]

Reality is that the markets is 99% ruled by the millions of fooles who buy on gossip, greed, panic, envy, hope, fear. And NOT the rasjonal investor we learn about in school. These logical people do exist, but they have almost zero power of the psychological driven trends ( that is trends driven by the emotions of the traders). This reason + the entreprenourial spirit of financial capitalism is the MAIN power that drives the trends. And there is a reason Adam Smith calls the price movements main power the " invisible hand of the market" and not the " visible hand of the market". That is we can se if the long trend goes up, down, sideways. But we can NEVER know if the trend vill change for the long run. Most people are short term traders and are driven by the need for attension ( they want to brag to their friends), greed, fear, panic, envi, lazyness. We are all like this. This is the main reason to buy and hold indexfunds and to NOT follow news and gossip

[@gianmariamalmesi4133]

@@Ikaros23 I only partially agree with you. I think most people is long term since they are invested in funds, pension funds, insurances etc. Short term traders provide liquidity to the market adding lot of fastidious noise. Point is you must know, when entering a trade if is just a trade or a long term investment

[@Ikaros23]

@@gianmariamalmesi4133 They think they are investors til a panic comes. Then they sell because they panic. And traders. That is people who try to trade on the short term fluctuasjons of the market, most often end up as unvulentarly " investors". that is they had a plan to buy stock X at price 100$, and sell for 120$. But instead the stock go to 75. Now they rasjonalise that the stock is a bargain so they buy more to avrage the price down. Then it go to 50-45-30$ and they dubble down on each step down and the size of the posisjon has grown 200-300% etc. At this point the former trader rasjonalise that....... " this is one hell of a company!, it`s driven by the best management in the word i might just save the stock for retierement!". Same go with the traders who short stocks that go up up up up up up up up ( FAANG and tesla)... " it cant go higher, the market is just driven by FED that manipulates the market, this stock is just a ponzi"... And then the stock go up 50-200-300% more!. Most traders and investors dont have a WRITTEN plan. That is I buy stock X at 100$, if it goes to 75 i take stopploss. They all want to be the next George Soros, when in reality you dont need to be a fucking genius to just buy and hold ultra large stocks like coke, facebook, amazon,microsoft and indexfunds with ultra low cost and just buy a normal apartment to live in. But people want to be mr " big short" or " Mr Soros"

[@brianmcg321]

Simple. Just keep buying.

[@InvestorCenter]

That strategy has worked pretty well over time

[@shatadrooc1456]

6:01 China develops as world's largest economy by 2020 ... Some of the high flying speculations do come true from time to time I guess.

[@rickycurley752]

“China will have the largest economy by 2020”. I’d say they fuckin nailed it

[@InvestorCenter]

Spot on

[@orangeblock3792]

👍🏾

[@MrKiddDiamondsTV]

Was thinking the same!

[@CKisHere123]

Not a good thing people... China is bad news for the world

[@Showmetheevidence-]

Yeah. Except it’s wrong.

[@mattfavaloro350]

2002 the euro was finally brought into the monetary system. 2005 the Russian economy was making a lot of positive economic gains Karma and in 2020 depending on who you ask and what they use to measure China or America have the largest economy. If China was to have the largest economy they would have recently overtaking America. That's pretty accurate for a wired Magazine article damn impressive

[@candyfloss184]

I respect this person

[@anonymous007007007]

Thank u very much for sharing these priceless videos of immense wisdom and knowledge 🙏🏽

[@rishabhr9331]

love these videos! keep em coming!!

[@InvestorCenter]

Appreciate the kind words. Thank you for watching!

[@taylenday]

"China develops the largest economy by 2020" Pretty accurate predictions if you ask me.

[@InvestorCenter]

Turns out it was pretty spot on

[@Solid_Snake99]

Not even close. USA will crush china dictatorship economy

[@CEROtian9279]

@@Solid_Snake99 Said by a man with Italian flag as cover image.

[@tomdong455]

@@Solid_Snake99 how's covid treating ya

[@Solid_Snake99]

@@CEROtian9279 the most valuable company in the world is from USA 🔥🔥

[@mikewy192]

Has anybody got a reference to the Wired article that Jack is referring to or who wrote it? Sound incredibly prescient now.

[@desimo147]

The Wired article turned out to be amazingly accurate these 25 years later.

[@joecombs7468]

Best place to put your investing dollars is in those companies that have the best balance sheet.

[@InvestorCenter]

Not a bad idea!

[@douglasmichel1000]

words of wisdom from saint jack

[@InvestorCenter]

He’s the man!

[@ukidding]

his voice is a littlle like jack lemmons

[@InvestorCenter]

😂😂😂

[@drott150]

He calls 1997 "interesting times." He would see much more interesting times in 2000, 2008 and almost made it to 2020 for the most interesting time of all.

[@JhintendoTwitch]

How interesting that the world is full of memes now.

[@InvestorCenter]

Jack Bogle was ahead of his times haha

[@Anonymous__Prime]

Lionheart SPAC is about to explode 💯

[@robertjohnson4401]

It took three years from this time of high stock market valuation for the stock market to crash back to normal valuation. Then the market again became overvalued again and crashed eight years later.

[@MAchannel2024]

So when is the next crash : )

[@robertjohnson4401]

@@MAchannel2024 Anytime from tomorrow up until 3 years from now. Knowing this, there is nothing you can do to take advantage of this information.

[@diseasefire]

@@robertjohnson4401 you can be conservative and risk averse with your approach :)

[@robertjohnson4401]

@@diseasefire Correct. That is exactly what I am doing now.

[@tomlxyz]

Are you aware that the stock market represents the future and not the present?

[@muditkushalvardhan4644]

I didn't exactly get his messege. Is he trying to say that even during these over the top markets, we should keep investing in INDEX? Or we should keep our money in bonds and wait for some correction and then start investing? Because now that we know, market is overpriced, we can surely wait on sidelines for sometime. And anyways, compounding in stocks is not direct like bonds where interest rate is fixed for a particular year. So we are not.losing anything by not participating in such overheated market. I am.talking of Indian market, as I am from India and our Index is at its peak with PE of 38 while it's average PE has been 22 . Please guide me.

[@h.b2029]

Excellent. Thanks.

[@InvestorCenter]

👍🏻

[@sommi888]

🧡💛💚💙 Jack Bogle was the original Bitcoin bull. Thankyou Jack, we are long because of you! 🙏

[@MarquiMarie]

25 years later is around now or so and meme...love it

[@user-ql3ws5uz1d]

All the SPAC and crazy valued IPOs look frosty and the only thing that is supporting the market is mostly the historically low interest rate. No one can predict the market but I won't be surprised if the market crashes within the next few years. RIP Jack!

[@InvestorCenter]

Exactly! I wonder what Jack would be saying about today’s market if he was alive!

[@robertjohnson4401]

@@InvestorCenter The same thing he said in this 1997 speech when the stock market was similarly overvalued.

[@johnfusc7962]

And in the next few years could be vice versa

[@kilgortrout3432]

This could have been made in 2022, just substitute GE with Apple, Merk with Amazon, etc...

[@conservativemovement]

Dec. 2020: Vanguard just pulled a ton of stuff out of Asia.

[@InvestorCenter]

🤔

[@FunnyAsian00]

Wh@t?

[@taylenday]

"This too shall pass away"

[@InvestorCenter]

Such an important thing to remember in investing

[@blackdeckbox]

Right now, index funds and some stocks are so overvalued. Is he proposing we should still invest in them? Instead of waiting for the market to correct itself?

[@mariusz128]

Yes. To put simply, we don’t know when a correction might come. Just to give a simple scenario, imagine you wanted to invest today in some stock but you didn’t because you felt that a pull back of let’s say 10% might be coming in a few weeks. But during that time it’s also possible that the stock gained 15% and shortly after dipped that 10%. That then puts you worse off for waiting and not buying at the earlier time. So the best strategy in my view is dollar cost averaging where you buy in whatever intervals to capture different price points.

[@Theo-dj7vs]

So we was completely wrong and the market have proven correct...

[@vicheakeng6894]

What is MEME

[@wilfhigginson465]

"It could happen, but I wouldn't bet the ranch on it" of course I hope for miracles, but the likelihood of miracles is a difficult probability to calculate. The probability of mean reversion is nearly 99% if you're not fussy about the timing... always have a little dry powder.

[@InvestorCenter]

It’s always a good idea to have some dry powder ready to be put to work!

[@gpcivil8807]

What year was this speech given?

[@RADIUMGLASS]

1997

[@swapnanilkapoor1319]

Inspirationally rationale

[@vicheakeng6894]

That is 2021

[@kmp642]

Great video, a world of info in that 12 minutes. Would you mind if I shared?

[@InvestorCenter]

Thank you for the kind words. You can share the link to my video wherever :)

[@pokerrich9]

Wired.com was absolutely right

[@drott150]

I love Jack Bogle, but he's being duplicitous here...or he will be in just another few years. In this video, and many others, he says don't try to time the market and just ride the corrections out. Buy and hold and disconnect your impulse to sell or time the market. But, just 3 years after this speech in the year 2000, he did just what he advised others not to do. He cashed out of his stock holdings because he thought valuations were too high and that the dot com bubble would pop. He was right of course and got lucky by not following his own advice. What would he say about valuations today, especially under the economic backdrop we've been living in for a year now?

[@vicheakeng6894]

RUMSPRINGA. Where is the Sun and the Moon ? 30×12= 360. The clock. The section of pie accordingly to the globe. The 5 elements and follows...

[@vonb2792]

It was mutual fund golden years. Than came etf/index golden years...(to which Bogle said it would create a monster). Now let's see the futur after all we in 2020.. all hail memes ! All Hail China!

[@tomlxyz]

He only disliked etf not general index

[@maukaexplorer662]

1000th like !!

[@InvestorCenter]

Thank you!!!

[@inspiredgalaxyresearch3782]

nice

[@ProLikeJesus3]

The market didnt crash for 2 more years. So he was 2 years off... so nobody knows when its gonna come down in reality.

[@KTWEBS]

did not expect to hear about le memes in this video. also lol at that article he read, its 2020 and that utopia is actually making things worse

[@bluegtturbo]

Hasn't history shown the optimists to have been correct as of 2020?

[@InvestorCenter]

Like Warren Buffett always says, never bet against America

[@marcomontecino5161]

Never bet against The Fed. People who were clever enough, have enough experience or memory to remember passed moves from the Fed and its bail out capacity were in a great position to get big catches. After Jerome Powell announced that The Federal Reserve was going to use all the tools at its disposal, it should have been a wake up call for any investor ready for a good deal.... March 21, 2020 was the day the whole market bounced, no matter what candle stick chart you look at, even in other country, the nose dive finds it floor and bounce back, pretty amazing seeing the power of that institution in action.

[@oliver8510]

Yes but it didn’t predict the dot com bubble

[@kryebaybee4048]

Say derivative three times into a mirror and this guys rant gets out of your head.

[@Embowafa2004]

oddly whats happening now...

[@InvestorCenter]

Crazy

[@jdengsky]

Summary pls

[@jonathantosiocello]

Please don't interrupt what he's saying by 'Like and Subscribe!'..

[@geoffreykeating8172]

Market at all time high best to trade , rather invest unless really know the stock buying

[@reece_harding]

WHEN WAS THIS SPEECH?

[@InvestorCenter]

1997, full information in description

[@reece_harding]

@@InvestorCenter Awesome, I checked the description but must have missed it

[@user-ql3ws5uz1d]

@@reece_harding No offense, but maybe you need to improve your reading ability to become a better investor.

[@reece_harding]

@@user-ql3ws5uz1d I was just basing my assumption on prior experience. I love the channel, but nearly every video I have to ask what the date is because Investor Center forgets/neglects to include it in the description

[@craiglawrance5342]

@@reece_harding funny I don’t see any description either? Is KZbin suppressing it somehow?

[@cathleensmith4717]

Oooooh, so was that C...a's plan for 2020! Not.

[@waterchris]

Bet you didn't see Trump coming

[@ackack8506]

Markets were mostly good under Trump

[@paul4972]

Yikes!

[@delinquense]

"Invest in bonds" didn't age well! There's no way he could have known and he would have changed his tune.

[@filippxx]

The man gives investing ideas for compounding over dozens of years not how to make good money next week. When you'll be hit with the first market crash his words will make extra sense. Everyone is a genius in a bull market.

[@delinquense]

@@filippxx Actually, I'm a genius in all markets but I still don't invest in bonds. Besides, last time I checked, I was still alive which is more than I can say for Jacko. In the meantime, good luck with your bond strategy.

[@delinquense]

@@filippxx Yeah, good luck with your bond investing strategy and listening to the advice of a dead guy! Let me know how that works for you.

[@exantiuse497]

@delinquense "genius in all markets" Hahaha, the Dunning-Kruger effect is is strong with you. Please come back and tell how your 'strategy' worked out once the bubble popped

[@delinquense]

@@exantiuse497 its people like you and your mindset that makes me the genius that I am, always falling for the latest Fool's gold. I stay the course, and while you are out there crying about how much you lost with Bitcoin, I reap the benefits of everyone coming back into the market. Besides, the majority of my immense wealth is in private investments, which faired extremely well during the most recent black swan event. In fact, it excelled. Still, no bonds or preferred shares. Not sure why you want me to apologize for being extremely successful.