Quotes About Finance

Being a Boglehead requires planning, commitment, patience, and long-term thinking.

It's important to understand that bonds and bond funds have a low correlation (they don't always move in the same direction at the same time) to stocks, so bonds can be a stabilizing force for a portion of your portfolio.

As an investor you can be well above average by settling for slightly less than the index returns.

Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) are one way that parents can earmark funds for their children's education. Often gifts of cash for a child's birthdays and other special occasions end up in this account, and it grows over time.

Morningstar is also a good source for finding out what a particular mutual fund's turnover rate is.

It's important to note that Vanguard offers their low-cost ETFs commission-free, eliminating the previously mentioned downside associated with having to pay commissions to buy and sell ETFs.

The child cannot be listed on the bond as either an owner or co-owner. However, if the child is listed on the bond as the beneficiary, the bond will still qualify for the tax-free educational benefit.

Don't invest in things you don't understand.

High inflation rates may come along and diminish purchasing power.

Whenever possible, we will use index funds with their low cost and low turnover.

An index fund dooms you to mediocrity? Absolutely not: It virtually guarantees you superior performance.

With an index fund, the certainty of keeping up with the market is a very worthwhile trade-off for the possibility of beating it.

Experiments have determined that at the emotional level, we feel the pain of a $100 loss twice as much as we enjoy the benefit of a $100 gain. Consequently, many people once burned by a stock market loss vow to never invest in it again. As Mark Twain said, "A cat who sits on a hot stove will never sit on a hot stove again, but he will probably never sit on a cold one either.

it's very important when using mutual funds in taxable accounts to use tax-efficient mutual funds or ETFs. Tax efficiency is relative. The idea is to locate the least tax-efficient funds in your tax-advantaged accounts and the most tax-efficient funds in your taxable account.

Rebalancing forces us to sell high and buy low. We're selling the outperforming asset class or segment and buying the underperforming asset class or segment. That's exactly what smart investors want to do.

Every few seconds it changes - up an eighth, down an eighth - it's like playing a slot machine. I lose $20 million, I gain $20 million.

I could be in Spain, spending my time playing bad golf; financially I don't need to play snooker. I play because I love it.

Financially, it's true that France does not have the same pulling power as England, Spain or Italy. But this is not the aspect that matters most to me.

My first objective is to invest, and if I have anything spare, then I spend.

Generally speaking, companies get into bankruptcy as a kind of meritocracy. Somebody made some sort of big mistake, to get into bankruptcy, and very often, a part of the mistake is too much leverage.

Macro-trading requires a high degree of skill, focus and repetition. Life events, such as birth, divorce, death of a loved one and other emotional highs and lows are obstacles to success in this specific field of finance.

During the past 30 years, European governments have provided more than $15 billion in the form of low- and no-cost loans to Airbus for the specific purpose of developing new aircraft lines.

The debate we won't be having is whether or not the debt ceiling should be raised. We will not have a situation where people will hold the American economy hostage in order to achieve a specific agenda - at least not until 2013. So we think that is incredibly important as a matter of economic good.

Global capital markets pose the same kinds of problems that jet planes do. They are faster, more comfortable, and they get you where you are going better. But the crashes are much more spectacular.