Bogleheads
How do people feel about bogleheads philosophy? It seems a little bit US centric. Even if you buy a fund that contains international stocks, it’s still tied to a US institution. For example, what happens if vanguard goes down? Also, it seems to be based on data from the past hundred years. What if we look at the past 500 years? How are blind folks diversifying assets internationally?
What relevance does the economy of 300, 400, 500 years ago have in a discussion about how to invest for the next 60-80 years? Not much. Also, a quick search of www.bogleheads.org will turn up several threads explaining why you shouldn’t be concerned about Vanguard going under.
If I understand correctly, the argument is that buy and hold is a good strategy because it has been so for the past 100 years. I’m just wondering if we’re at the end of a good 100 year run for example. I’m glad there’s no concern around Vanguard going bankrupt.
How much Boglehead states to invest in Individual Stocks vs Funds?
Have an asset allocation you're comfortable with and stick with it.
1/3 of the companies in the s/p 500 derive over half of their income overseas. Most derive a portion of it from overseas. So, in a sense, investing in the 500 gives you international exposure with the relative stability of the dollar, government, and US Corporate governance. Also I’m not Alfred Nobel so I don’t care about what America looks like in 500 from an investment point of view. Just 50 - 60 years out total. What do you mean by vanguard going down? The stock or the company itself?
I meant Vanguard itself. I understand about not caring about what happens in 500 years. My point is more about thinking about it retroactively. If you make your decisions based on the last 500 years instead of the last 100 years, does it change the recommended way to go about investing?
Doesn’t matter. You’re not investing in vanguard. They’re just managing the money for you. I’m sure there’s a mechanism in place in the event of their insolvency, which seems highly unlikely. If not there’s always TARP 2.0.