I’ve posted Entry #54 to my weekly Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s called John Bogle Talks Out of Both Sides of His Mouth.
Juicy Excerpt: Bogle has a cute way of expressing his opposition to market timing. He says: “Not only have I never heard of anyone who engaged in successful market timing. I have never even known anyone who knew anyone who engaged in successful market timing.”
Bogle himself has engaged in successful market timing! He lowered his stock allocation dramatically at the top of the bull market and spared himself some big-time losses by doing so.
Yet he still says that he does not know anyone who knows anyone who has engaged in successful market timing. Does he not know himself? Does he not think it might be a good idea to write a letter introducing himself to himself with the aim of getting to know himself better?
Once Bogle got on speaking terms with himself, sparks would begin to fly. He would no longer feel a need to tell people that he does not know anyone who knows anyone who successfully practiced market timing. He would be freed to tell what he knows but doesn’t today know that he knows. My sense is that the man knows some interesting stuff. If only he knew that he knew it!