John Bogle
John Bogle🛡 Risk Management

John Bogle's Risk Management 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·Risk Management

3 Key Risk Management Principles

#1

Risk-First Approach

"Before considering how much you can make, consider how much you can lose. Risk management is not about avoiding risk entirely, but about understanding and controlling it."

Consider the downside before the upside.

🌿 Intermediate★★★★★
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#2

Bond Allocation Rule

"A rough rule: hold your age in bonds. A 30-year-old might hold 30% bonds, a 60-year-old 60% bonds."

Bond allocation should roughly match your age percentage.

🌱 Beginner★★★★☆
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#3

Asset Allocation

"Your asset allocation - the mix of stocks, bonds, and cash - is the most important investment decision you'll make."

Asset allocation determines most of your investment returns.

🌿 Intermediate★★★★★
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Frequently Asked Questions

What are John Bogle's key risk management principles?

John Bogle has 3 key principles on risk management. The most important one is "Risk-First Approach" — Before considering how much you can make, consider how much you can lose.

How does John Bogle apply risk management in practice?

John Bogle applies risk management through several key principles including "Risk-First Approach" and "Bond Allocation Rule". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes John Bogle's approach to risk management unique?

John Bogle's approach to risk management 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.

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