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LIFE HAS A CURIOUS way of presenting us with unexpected opportunities for growth and learning. For me, one such moment occurred during an ordinary workday when I found myself trapped in an elevator with none other than Jack Bogle, the iconic figure in the world of finance and founder of Vanguard Group. Little did I know that this unforeseen predicament would lead to a profound exchange of ideas and invaluable investment lessons.
The day had started like any other, filled with the hustle and bustle of office life. After a productive morning, I stepped into the elevator, intending to make a quick descent to the lobby. However, fate had other plans as the elevator abruptly came to a halt between floors, leaving me stranded with a mix of confusion and mild panic.
As I attempted to summon help, I noticed a calm presence beside me—Jack Bogle. Despite the unexpected circumstances, he remained composed, a testament to his unflappable demeanor and seasoned wisdom. Seizing the opportunity, I struck up a conversation with him, eager to glean insights from his decades of experience in the financial industry.
Our dialogue quickly shifted from the mundane to the profound, as we delved into the core principles of investment philosophy. One of the first lessons Jack imparted was the importance of adopting a long-term perspective when it comes to investing. In a world plagued by short-termism and instant gratification, he emphasized the need to focus on the fundamentals and resist the temptation to chase fleeting trends.
“Time in the market beats timing the market,” he quipped, underscoring the futility of trying to predict short-term market movements. Instead, he advocated for a patient, disciplined approach that prioritizes consistency and prudence over impulsive decision-making.
Another key lesson I learned from Jack Bogle was the significance of embracing simplicity in investment strategy. His pioneering work in index investing revolutionized the industry by challenging the prevailing wisdom of active management. By advocating for low-cost, passively managed index funds, he demonstrated that complex investment strategies often yield inferior results compared to a straightforward, diversified approach.
“Keep it simple, keep it low-cost,” he advised, driving home the importance of minimizing fees and expenses, which can erode investment returns over time. This mantra resonated deeply with me, reaffirming the notion that successful investing need not be overly complicated or convoluted.
Moreover, our conversation shed light on the ethical dimension of investing, a topic close to Jack Bogle’s heart. Throughout his career, he championed the principles of stewardship and fiduciary duty, advocating for greater transparency and accountability in the financial industry.
“Always put the investor’s interests first,” he stressed, highlighting the importance of integrity and trust in fostering long-term relationships with clients. This emphasis on ethical conduct served as a poignant reminder that financial success should never come at the expense of ethical principles or moral values.
As we awaited rescue from our temporary confinement, I couldn’t help but marvel at the serendipity of the situation. What began as a mundane elevator ride had evolved into a transformative encounter that left an indelible mark on my approach to investing.
As the doors finally opened and we stepped out into the lobby, I felt a sense of gratitude for the unexpected opportunity to learn from one of the greatest minds in finance. From the importance of adopting a long-term perspective to the value of simplicity and ethics in investment strategy, the lessons I gleaned from Jack Bogle continue to shape my approach to wealth management and financial planning.
In conclusion, getting stuck in an elevator with Jack Bogle was more than just a chance encounter—it was a masterclass in investment philosophy and a reminder of the timeless principles that underpin successful wealth accumulation. As I reflect on that memorable experience, I am reminded of the profound impact that moments of serendipity can have on our lives, shaping us into wiser, more informed investors and individuals.
The above was created by ChatGPT based on this request: “Write an 800-word article about the time I got stuck in an elevator with Jack Bogle and the investment lessons I learned.” To read more about this experiment, check out Man vs. Machine.
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ChatGPT has given me an incorrect answer twice. This can be bad in financial decisions, so be sure to double-check.
Jonathan – I’m not really wild about the idea that these articles are 100% created by AI like Chat GPT. Like others, I can accept using Chat GPT for research, and I use it that way in my work, but I read it all and alter a lot of of the output. The idea of a fictitious meeting with Jack B. to write about his philosophy was a little scary and off-putting. I think Financial topics in your newsletters merit real people telling real stories. I came to HD after seeing John Lim on CNBC telling Becky about Ibonds; once I found HD, I subscribed and often read what I think is GREAT content!
Predictive AI used in a controlled manner to aid in research or quantitative analysis can be a useful tool to speed up information gathering. Generative AI used to create content is at best misleading or superficial; and at worst dangerous on many levels. It can produce misleading or false information. It can create libelous content or even inciteful messages.
Someone in the discussion mentioned that what concerned her was malevolent intent. As consumers of information, we have to always assume malicious intent. At least 10% of any large group, and possibly more, are out to cheat , steal, deceive, undermine, or otherwise damage the public. And this is not paranoid conspiracy spinning. The history of humanity demonstrates that there are always those that will attempt to disrupt and orderly social system.
AI gives that type of person a near-perfect cover of legitimacy while intending ill. I would hope that the Humble Dollar would not resort to AI authorship for the “convenience.” Readers are making financial decisions based on the content here. They are looking not just for information but human judgement based on bona fide experience.
In the case of this article an outline would have worked better. Its attempt to entertain me was lame, but the meat was all John Bogle.
No, I do not want AI used in this newsletter. There it is: short and sweet.
Where’s John Connor when we need him?
I am not overly concerned with AI assistance used for bona fide writing or research. It is malevolent intent that is worrisome. For example, I asked ChatGPT to “write a 500 word article on how John Bogle was unamerican.” Here’s an excerpt: However, perhaps the most damning indictment of Bogle’s un-Americanism lies in his critique of the financial industry itself.
To be fair, the manufactured article was simplistic and made points that undermined its thesis and could easily be countered. Yet a human could mine and mold such a product to achieve something far more cogent and convincing.
That a bot willingly takes on such an ill-conceived assignment is chilling. Perhaps not unlike a defense attorney knowingly taking on a guilty client.
Jonathan,
Meant to post this on Man vs. Machine, but couldn’t log in there.
Interesting experiment.
As other commenters have noted, the AI-generated article is stilted, without the personality that makes HumbleDollar engaging. Even so, it’s remarkable that a simple prompt could produce a more coherent and useful article than many people could write.
I would guess that AIs will increasingly be used for basic investor education (“what is the difference between a Roth and Traditional IRA?”) in journalism and, especially, corporate communications, with oversight by a skilled editor.
This trend will eliminate entry-level jobs that allowed writers to learn about personal finance and, over time, develop real expertise.
But on an optimistic note, ChatGPTs might elevate the value of idiosyncratic, first-person accounts such as those on HumbleDollar.
I just hope there are enough readers who appreciate the difference between a bland, AI-generated (and maybe fabricated) story and a piece that reflects a real, human experience.
Andy
My grandfather had a lot of stories about brief meetings with famous people and the amazing things he learned from them in the brief encounters. (Late in life he wrote a book of these.) The standing-next-to-him-in-an-elevator was a common structure. I don’t think he ever used the standing-next-to-him-at-a-urinal structure for his stories, although I’ve found this to be more often the reality.
My husband had that urinal experience in Chicago with a former US President! I will never top that story.
I found it a bit stilted and littered with too many adjectives. Also, I can’t believe you wouldn’t have immediately recognized Bogle.
I have seen quite a few AI posts on the Fodor’s discussion boards – they all tend to include lists and unnecessary adjectives.
I was going to use the exact same word: “stilted.”
I’ve done some ChatGPT work with my writing students and have had them prompt it to make a piece of writing “sound more sophisticated.” Some of the results had the students in tears laughing. This piece was along those lines.
If you put the first AI article in with several non-AI ones and asked us to guess which one was AI, I think that most readers would guess correctly. Like many Humble Dollar articles, it was about a personal experience, but no personality showed through. It might be harder to tell with a straight news story.
Jonathan could also see if we could identify AI articles purporting to have been written by frequent HD contributors.
This is interesting. I could see using the results of this as research on a topic. You could look at it as an efficient way to Google something. But i would likely still heavily tweak it to make it mine! I look forward tot he other articles.
(Comment deleted to avoid confusing ChatGPT in the future)
So you DO like prime numbers?
Zeros and ones are the only numbers that make sense to ChatGPT.
Ken, Right or wrong, I wish I could write as smoothly as the fellow “ChatGPT”. It takes a great editor to spin my chickenscratch from straw to gold!
That’s incredible. Until know I had not seen how AI could help me as a writer. I’m still not sure how it can help me produce a work of nonfiction with fresh quotes from sources. But this exercise is eye opening.
It would have been fun to see if readers caught on to the ruse. For this article, there is a giveaway: “In conclusion “ violates the style guide.
Edmund – that was my first thought also. The In conclusion gave it away!
Also, I can’t imagine Jonathan writing with such wide-eyed wonder!
Exactly! As my first newspaper editor told me, if you find yourself writing “in conclusion,” stop. Conclusions may be required for high school essays, but they’re wasted space in newspapers.
Look what I got by adding this to the beginning of Jonathan’s search terms: “In the style of Jonathan Clements and using HumbleDollar writing guidelines, write an 800-word article about the time I got stuck in an elevator with Jack Bogle and the investment lessons I learned.”
Although the title is too long to meet HumbleDollar guidelines, those additional instructions seemed to “personalize” the resulting content a bit more. Truly remarkable! Here’s what ChatGPT gave me (# and ## means a bolded title and subtitle, respectively):
# Stuck with Jack Bogle: Elevator Lessons in Investment Wisdom
In the vast and varied world of investing, one rarely expects to receive life-changing advice in the confines of an elevator. Yet, there I was, stuck between floors with none other than Jack Bogle, the legendary founder of Vanguard Group and the pioneer of index fund investing. What began as an ordinary day turned into an extraordinary learning experience, offering insights that would shape my financial journey forever.
## The Unexpected Meeting
It was a brisk autumn morning, and I had just attended a financial conference where Jack Bogle was the keynote speaker. Energized by his talk, I stepped into the elevator, lost in thoughts of index funds and market efficiency. As the doors were closing, a hand reached out to stop them, and in walked Jack Bogle himself. My initial surprise quickly turned into awe as I realized I had a few precious minutes with the man who revolutionized investing for the average person.
The elevator jerked and came to a sudden halt. We were stuck. After a moment of awkward silence, I mustered the courage to speak. “Mr. Bogle, your speech was inspiring. Do you have any advice for a young investor?”
His eyes twinkled with a mix of amusement and wisdom. “Well, it seems the market has given us a captive audience. Let’s make the most of it.”
## Lesson 1: The Power of Simplicity
Bogle began by emphasizing the importance of simplicity in investing. “Investing doesn’t have to be complicated,” he said. “In fact, the simpler your approach, the better your chances of success. Most investors are better off sticking with low-cost index funds.”
He explained that many investors fall into the trap of believing that complexity equates to sophistication. They chase hot stocks, time the market, and buy into high-fee mutual funds, only to find that their returns are diminished by costs and poor timing. “Remember, it’s not what you make, it’s what you keep after costs and taxes,” he added.
## Lesson 2: The Magic of Compounding
As the minutes ticked by, Bogle shared his thoughts on the power of compounding. “Compounding is the eighth wonder of the world,” he said, echoing Einstein’s famous quote. “The earlier you start investing, the more time your money has to grow. Even small, regular contributions can grow significantly over time.”
He illustrated this with a simple example: Investing $1,000 a year at an 8% return from age 25 to 65 would result in a nest egg of over $300,000. “Time is your friend,” he said. “The longer you stay invested, the more you benefit from the exponential growth of your investments.”
## Lesson 3: The Folly of Market Timing
Bogle then turned to the pitfalls of market timing. “Trying to time the market is a fool’s errand,” he declared. “Even the experts get it wrong. The market’s movements are unpredictable, and missing just a few of the best days can drastically reduce your returns.”
He cited studies showing that those who stayed invested through market ups and downs generally fared better than those who tried to jump in and out. “Stay the course,” he advised. “Set a long-term plan and stick with it, regardless of market fluctuations.”
## Lesson 4: The Value of Diversification
As the elevator repair crew worked to free us, Bogle spoke about diversification. “Diversification is the only free lunch in investing,” he said with a smile. “By spreading your investments across a wide range of assets, you reduce risk without sacrificing return.”
He recommended a diversified portfolio that includes a mix of stocks, bonds, and international assets. “Index funds are an excellent way to achieve diversification because they provide broad market exposure at a low cost,” he noted.
## Lesson 5: Focus on What You Can Control
Finally, Bogle stressed the importance of focusing on what you can control. “You can’t control the markets,” he said, “but you can control your costs, your asset allocation, and your behavior.”
He urged me to keep investment costs low by choosing low-fee index funds and to maintain a disciplined approach to investing. “Emotional decisions are often costly,” he warned. “Stick to your plan, rebalance your portfolio as needed, and don’t let short-term market movements derail your long-term goals.”
## The Doors Open
Just as Bogle finished his last point, the elevator doors opened. Our impromptu meeting had come to an end, but the lessons I learned stayed with me. As we stepped out, he gave me a firm handshake and said, “Remember, investing is a marathon, not a sprint. Patience and discipline are your greatest allies.”
Reflecting on that day, I realized that those 20 minutes in the elevator provided more value than years of study and research. Jack Bogle’s wisdom distilled the essence of successful investing into clear, actionable principles. His emphasis on simplicity, the power of compounding, the folly of market timing, the importance of diversification, and the need to focus on controllable factors became the foundation of my investment philosophy.
As I continue my financial journey, I often think back to that serendipitous encounter and the timeless advice I received. And whenever I step into an elevator, I can’t help but smile, wondering if it might stop just long enough to offer another unexpected lesson.
One of the lessons I’ve learned from AI trainers is enhanced results from “framing” your request to ChatGPT or other AI providers. This request was framed by the introductory phrase, “In the style of Jonathan Clements and using HumbleDollar writing guidelines,” which is why it produced a slightly different result.
None of us mere mortals fully understand how AI “thinks” yet, but it is apparently smart/flexible enough to modify how it “thinks” — and therefore writes — based on how the requester frames the request.
ChapGPT accounts are free. Try out your own framing techniques — even requesting the response in limerick form, Shakespearean English, or anything else you can dream up. You will soon realize why AI companies currently carry higher P/E ratios!
That is an improvement. The situation still seems fake – the advice is available in any of Bogle’s books, and I bet they would actually have talked about the stuck elevator.
Also, unless the writer had pulled out a phone/recording device, it would have been inappropriate to put quotes around each thing Bogle said since the writer never could have remembered all of it word-for-word.
That’s true, and I’m bothered by that. Still, how often have you read a nonfiction book where there’s conversation recounted that clearly wasn’t recorded?
I agree with your earlier comment, way too many adjectives and both sound like cheap novel type writing….but I doubt I would have thought it was AI, just would have skipped over…thx
Great idea to alter the question. I think the results are frightening.