John Bogle, founder of Vanguard and the creator of index mutual funds, has a word or two of advice for investors everywhere.
Based on his 65 years of experience in the investment industry, he's put together a list of seven — just seven — tips for investors.
The tips are part of an extensive essay Bogle wrote for the CFA Institute on balancing professional and business values. It's a long, worthwhile read from a man many consider to be the head of the index investing revolution.
Quoting directly from the document, here are some of Bogle's words of advice:
"Over the long run, the growth trends in our economy and financial markets have been solidly upward, despite the gyrations and uncertainty we inevitably experience as the years roll by," Bogle concluded.
"It is reasonable to assume that this growth will continue," he said. "Do not let false hope, fear and greed crowd out good investment judgment. If you focus on the long term and stick with your plan, success should be yours."
Bogle founded Vanguard, the largest mutual fund manager and the second-largest ETF issuer in the U.S., with more than $720 billion in ETF assets alone. Vanguard is known for its low-cost focus, and among its 70 ETFs in the market are giants such as the $79 billion Vanguard Total Stock Market ETF (VTI) and the $68.7 billion Vanguard S&P 500 ETF (VOO), both of which cost only 0.04% in expense ratio, or $4 per $10,000 invested.
—By Cinthia Murphy, ETF.com
Watch: Bogle says stocks relatively expensive, but better than bonds