#1
Management Evaluation
"Evaluate management by their actions, not their words. Look for a track record of capital allocation, shareholder communication, and aligned incentives."
Judge management by actions, not words.
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John Bogle📌 Business Judgment
John Bogle's Business Judgment Rules
John Clifton "Jack" Bogle (May 8, 1929 – January 16, 2019) was an American investor, business magnate, and philanthropist. He founded The Vanguard Group in 1975 and created the first index mutual fund available to individual investors, revolutionizing the investment industry. Bogle is credited with pioneering low-cost investing and championing the rights of individual investors against Wall Street's high fees....
3 principles·Business Judgment
3 Key Business Judgment Principles
#2
Industry Structure Analysis
"Understand the industry structure before evaluating any company. Industry economics often matter more than company-specific factors in determining returns."
Industry structure shapes investment outcomes.
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Capital Allocation Assessment
"The most important skill for a CEO is capital allocation. Evaluate how management deploys capital — do they create or destroy value with their decisions?"
Evaluate management's capital allocation skills.
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What are John Bogle's key business judgment principles?
John Bogle has 3 key principles on business judgment. The most important one is "Management Evaluation" — Evaluate management by their actions, not their words.
How does John Bogle apply business judgment in practice?
John Bogle applies business judgment through several key principles including "Management Evaluation" and "Industry Structure Analysis". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes John Bogle's approach to business judgment unique?
John Bogle's approach to business judgment is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, John Bogle provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
