'T-bill and chill': Why Jack Bogle's strategy of 'lazy' investing is making a comeback
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Boring investing is making a comeback.
With the meme-stock rally in the rearview mirror and interest rates surging, individual investors are rediscovering the philosophy made famous by Vanguard's founder, Jack Bogle. The father of market indexes preached low-cost, passive investments that compound over years. Fans call themselves «Bogleheads,» and the strategy «lazy» investing.
They're well positioned for the current market. Timing has proved difficult this year, with eight days accounting for all of the S&P 500's gains, according to DataTrek. Higher rates have slammed tech and growth stocks, which dominated retail traders' portfolios during the pandemic. GameStop, the original meme trade, is down roughly 85% from its all-time high.
Dan Griffin, a self-proclaimed Boglehead based in Florida, said he watched the meme stock rally in amusement. The current market condition is proof that his «tortoise» investing approach is the right one to building long-term wealth, he said.
«It's a little bit of vindication,» Griffin told CNBC. «I'm happy to be the boring investor, I'm happy to be the tortoise. While the hare does win sometimes, the tortoise more often than not, is going come out ahead.»
Christine Benz, a director of personal finance and retirement planning for Morningstar, said investors are gravitating towards higher yields right now to capture value — another core principle of the Bogleheads.
«Bogleheads are investing for the very long haul — the idea is that you're putting money into your account and just adding to it, maybe not touching it or looking at it for another 30 years,» she said. «The meme stock phenomenon seemed so focused on being incredibly plugged into your portfolio and monitoring your
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