Building an ETF Portfolio we can be proud of

Dec 14, 2023

∙ Paid

Since the ETF Portfolio launched in October, it returned 8.6%.

Now it’s time to buy our third ETF.

Today’s focus? Quality & Size.

Jack Bogle

The man who created the most wealth in the world? It might be Jack Bogle.

What Benjamin Graham is to value investing, Jack Bogle is to passive investing.

Jack Bogle (1929-2019) was the founder of The Vanguard Group and played a crucial role in the development of index funds.

He popularized low-cost, passive investment strategies.

While Jack Bogle was a passionate investor himself, he recognized that it’s very difficult to pick winining stocks.

The core of his investment philosophy?

Always think on the long-term, be extremely patient and reduce broker fees and other costs as much as possible.

Did you know that only 4% of all listed stocks are responsible for all stock market gains that exceed the return of safe one-month Treasury bills?

This shows you that you don’t need to look for the needle (the winning stock), instead you just buy the haystack (all listed stocks).

Here are the 7 essential lessons on which Jack Bogle has built his success:

Always stay invested: time in the market beats timing the market
Time is your friend: let the power of compounding work for you for as long as possible
Impulse is your enemy: eliminate emotions when making investment decisions
Minimze costs: keep your investment expenses low
Keep it simple: use common sense and stick to the basics
Never forget reversion to the mean: investment strategies go in- and out-of-favor regularly
Stay the course: don’t get discouraged by setbacks

"In investing, you get what you don't pay for." - Jack Bogle

Now you know this, let’s dive into Compounding Quality’s ETF Portfolio.

As a reminder, here are the rules for the ETF Portfolio:

Every second Thursday of the month, Compounding Quality will buy an ETF or add to an existing ETF for $500
There will be a maximum of 5 ETFs in the portfolio (Keep It Simple, Stupid!)
The costs of each ETF may not exceed 0.5% per year (3x as cheap as a mutual fund)

We bought 2 ETFs so far and today it’s time to buy the third one.

You want to know which one? Let’s hop right in.