Leeor Geva, BS CS, MBA
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Video Notes 4: Jack Bogle - Part 3 w/ Mark Witte

1/16/2021

 
Entire video from the beginning:

​Time Stamp: 04:00
​Notes: Non-US exposure: 50% of US company revenues come from international.  So no need to add any international index funds.

​Time Stamp: 07:00
​Notes: Financial advisors will tell you they can do better than the market because they can't have a business if they tell you the truth that they do worse.

​Time Stamp: 10:45
​Notes: To protect you from behavioral mistakes, add a bond position.  But, stocks in the long run outperform bonds.  Also, if it looks like the market is in an extreme bubble territory (my take on this is if P/E is beyond 30 to 40 for the market) then you can adjust your bond position closer to 50%.  When there is a correcting you can bring this back.  If you want to try and time.  Which you should not do and just ride.  (My take: in an IRA account you can do this without a taxable event, in a taxable account he mentions in other interviews that a Total Municipal Bond Market index fund would allow you to make these adjustments without taxable events)

​Time Stamp: 13:00
​Notes: Explaining when stocks (the total market) were close to 40x earning (1999), he readjusted the bond/stock ratio.  (Higher bond in this case).

​Time Stamp: 15:00
​Notes: But you can't always for-see corrections because in 72/74 stocks were only moderately overvalued before getting down to a greatly undervalued.  All stock drops are different.

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    Author

    This is NOT official financial advice.  It is just my notes on Jack Bogle and Bogleism, the practice of using total market index funds in equity and bond investments.

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    Reversion To The Mean
    VIDEO 1: JACK BOGLE ON INDEX FUNDS VANGUARD AND INVESTING ADVICE - MOTLEY FOOL
    VIDEO 2: THE ASPEN INSTITUTE
    VIDEO 3:JOHN BOGLE - CONSUELO WEALTHTRACK
    Video 4 Continued
    VIDEO 4: JACK BOGLE PART 3 With MARK WITTE
    VIDEO 5 - IN PURSUIT OF THE PERFECT PORTFOLIO - MIT LABORATORY FOR FINANCIAL ENGINEERING

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