10K vs 10Q

 Public US companies each quarter produce a 10Q quarterly report with unaudited financial statements, and they yearly produce a 10K annual report with audited financial statements. These reports contain the summary of the company’s revenues, costs, profits, equity, debt, and cash flows.

Jack Bogle Investing Rules

Barry Ritholz presents this philosophy from Jack Bogle

https://ritholtz.com/2022/01/jack-bogles-rules-for-investing/

 Investing Versus Speculation

1. Remember Reversion to the Mean
2. Time Is Your Friend, Impulse Is Your Enemy
3. Buy Right and Hold Tight
4. Have Realistic Expectations: The Bagel and the Doughnut
5. Forget the Needle, Buy the Haystack
6. Minimize the Croupier’s Take
7. There’s No Escaping Risk
8. Beware of Fighting the Last War
9. The Hedgehog Bests the Fox
10. Stay the Course

These translate to

Bogle’s Rules
1. Select low-cost funds
2. Consider carefully the added costs of advice
3. Do not overrate past fund performance
4. Use past performance to determine consistency and risk
5. Beware of stars (as in, star mutual fund managers)
6. Beware of asset size
7. Don’t own too many funds
8. Buy your fund portfolio – and hold it

Details here

http://johncbogle.com/wordpress/wp-content/uploads/2013/05/c09.pdf

Callan Periodic Table

 The Callan Periodic Table of investment returns ranks the returns of different stock investment sectors for each year going back 20 years. It’s interesting to see how different sectors outperform and underperform in different years and over the last 20 years. Callan ranks 9 different sectors including stocks, bonds, real estate, and cash equivalents.

Link: https://www.callan.com/periodic-table/

FI Calculator

 The 4% safe withdrawal rate (SWR) is based on stock and bond market simulations that back test retirement portfolios. An interesting example is this site FI Calc. It includes different withdrawal rates.

Lifestyle Inflation

 The biggest threat to building wealth is lifestyle inflation, where as your income increases the cost of your lifestyle increases. This is how even high earners end up living paycheck-to-paycheck. Wealth is built by investing the difference between income and expenses, and letting it grow exponentially over many years.

Investing Principles

Barry Ritholz interviews financial stars on his podcast and is a font of knowledge on investing in this article, Ten Simple Money Rules for Investing Success.

• Investing is both simple and hard
• Behavior is everything
• Moderation in all things
• Risk and reward are inseparable
• Spend less than you earn
• Leverage kills
• Understand your role

Ray Dalio's Principles

TIP, The Investors Podcast, We Study Billionaires reviewed Ray Dalio's book, Principles, and a major take away they got from the book was Ray's 3 C's for hiring: Character, Common Sense, Creativity.

Millionaire Next Door

One of the first financial books I ever read was "The Millionaire Next Door". The book investigates the characteristics common to American millionaires, and it debunks the idea that millionaires are free spending playboys. Millionaires build wealth by maximizing their income and not spending more than they make. This book demystifies the traits of millionaires and how to become one. Amazon: https://www.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1589795474