--- title: "Meaning & Key Takeaway of: We make too much out of past performance…" description: "\"We make too much out of past performance, and it's very misleading to investors. It causes them to move money around. They buy a fund that's hot and th..." image: "https://sms4smile.com/quotes/i/8f1/john-c-bogle-2199_cold_we-make-too-much-out-of-past-performance_101400.jpg" --- # We make too much out of past performance, and it's very… ![“We make too much out of past performance, and it's very misleading to investors. It causes them to move money around. They buy a fund that's hot and then it turns cold as all hot funds eventually do. And then they get out. Well, buying at the high and selling at the low isn't going to leave you a…” quote by John C. Bogle](https://sms4smile.com/quotes/i/8f1/john-c-bogle-2199_cold_we-make-too-much-out-of-past-performance_101400.jpg) [Download](https://sms4smile.com/quotes/i/8f1/john-c-bogle-2199_cold_we-make-too-much-out-of-past-performance_101400.jpg) [Open image](https://sms4smile.com/quotes/i/8f1/john-c-bogle-2199_cold_we-make-too-much-out-of-past-performance_101400.jpg) > “We make too much out of past performance, and it's very misleading to investors. It causes them to move money around. They buy a fund that's hot and then it turns cold as all hot funds eventually do. And then they get out. Well, buying at the high and selling at the low isn't going to leave you a satisfied shareholder, right?” [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Investors overreact to recent fund performance, buying high and selling low, which leads to dissatisfaction and suboptimal returns. **In simple terms:** Chasing hot funds hurts investors. Key Takeaway Momentum chasing erodes wealth. Themes investing behavioral finance market cycles risk management Mood cautious analytical Type financial advice cautionary When to use this quote - Retail investor webinars - Retirement planning sessions - Financial advisory meetings Key Concepts loss aversion herding behavior Practical Applications - Adopt a long‑term, diversified strategy. - Use systematic rebalancing to avoid emotional trades. Questions to Reflect On - Why do investors gravitate toward recent winners? - What safeguards can prevent impulsive trading? A Different Perspective Some active strategies can add value if rigorously researched, though they are rare. ★ ★ ★ ★ ★ No ratings yet [Cold](https://sms4smile.com/quotes/about/cold/) [Customer](https://sms4smile.com/quotes/about/customer/) [Investing](https://sms4smile.com/quotes/about/investing/) [Money](https://sms4smile.com/quotes/about/money/) [Past](https://sms4smile.com/quotes/about/past/) [Performance](https://sms4smile.com/quotes/about/performance/) ## Related quotes > [My advice is this: If you want to buy funds, buy no-loads, because you'll spare yourself the commission. But every time you sell, whether…](https://sms4smile.com/quotes/kenneth-fisher/my-advice-is-this-if-you-want-to-buy-funds-buy-no-loads-because-you/) [Kenneth Fisher](https://sms4smile.com/quotes/author/kenneth-fisher/) > [All the time and effort people devote to picking the right fund, the hot hand, the great manager have, in most cases, led to…](https://sms4smile.com/quotes/peter-lynch/all-the-time-and-effort-people-devote-to-picking-the-right-fund-the/) [Peter Lynch](https://sms4smile.com/quotes/author/peter-lynch/) > [Performance poetry is not one genre. Some chant, sing and dance. Some stand rooted to the spot and stare. Some chat their way in…](https://sms4smile.com/quotes/michael-rosen/performance-poetry-is-not-one-genre-some-chant-sing-and-dance-some/) [Michael Rosen](https://sms4smile.com/quotes/author/michael-rosen/) > [“When we perform at our highest level of potential, we are content. Because we have given I best in what we enjoy doing.”](https://sms4smile.com/quotes/ellen-j-barrier/when-we-perform-at-our-highest-level-of-potential-we-are-content/) [Ellen J. Barrier](https://sms4smile.com/quotes/author/ellen-j-barrier/) > [The life of a play begins and ends in the moment of performance. This is where author, actors, and directors express all they have…](https://sms4smile.com/quotes/peter-brook/the-life-of-a-play-begins-and-ends-in-the-moment-of-performance-this/) [Peter Brook](https://sms4smile.com/quotes/author/peter-brook/) > [There is something about the live performance of an orchestra that makes it very different to a film. With a film, you can rewrite…](https://sms4smile.com/quotes/gael-garcia-bernal/there-is-something-about-the-live-performance-of-an-orchestra-that/) [Gael Garcia Bernal](https://sms4smile.com/quotes/author/gael-garcia-bernal/) > [“An applause is not just the recognition of good performance, but its proof of being different than the crowd.”](https://sms4smile.com/quotes/amit-kalantri/an-applause-is-not-just-the-recognition-of-good-performance-but-its/) [Amit Kalantri](https://sms4smile.com/quotes/author/amit-kalantri/) > [I'm very proud of my performance in 'Bow Barracks Forever.' This was one of my most enjoyable experiences.](https://sms4smile.com/quotes/victor-banerjee/i-m-very-proud-of-my-performance-in-bow-barracks-forever-this-was-one/) [Victor Banerjee](https://sms4smile.com/quotes/author/victor-banerjee/) > [When I see things through my eyes, I don't want to ever just be really negative towards someone's performance. There are many ways to…](https://sms4smile.com/quotes/stone-cold-steve-austin/when-i-see-things-through-my-eyes-i-don-t-want-to-ever-just-be-really/) [Stone Cold Steve Austin](https://sms4smile.com/quotes/author/stone-cold-steve-austin/) > [The fans can accept a poor performance, but they won't take it when you choose not to put in the effort.](https://sms4smile.com/quotes/pep-guardiola/the-fans-can-accept-a-poor-performance-but-they-won-t-take-it-when/) [Pep Guardiola](https://sms4smile.com/quotes/author/pep-guardiola/) > [Win or lose or draw, you always go back and critique your performance and say you could have done things better. Even if I…](https://sms4smile.com/quotes/dustin-poirier/win-or-lose-or-draw-you-always-go-back-and-critique-your-performance/) [Dustin Poirier](https://sms4smile.com/quotes/author/dustin-poirier/) > [One of the undervalued contributors to Trump's stunning 2016 victory was the masterful performance Pence had in his debate against Hillary Clinton running mate…](https://sms4smile.com/quotes/mollie-hemingway/one-of-the-undervalued-contributors-to-trump-s-stunning-2016-victory/) [Mollie Hemingway](https://sms4smile.com/quotes/author/mollie-hemingway/) > [I love fashion. I like dressing how I feel, and my music shows how I feel - they go hand in hand. My performance…](https://sms4smile.com/quotes/banks/i-love-fashion-i-like-dressing-how-i-feel-and-my-music-shows-how-i/) [Banks](https://sms4smile.com/quotes/author/banks/) > [Certainly the most requested song in performance is 'Love is Here to Stay,' and that is a favorite for me.](https://sms4smile.com/quotes/michael-feinstein/certainly-the-most-requested-song-in-performance-is-love-is-here-to/) [Michael Feinstein](https://sms4smile.com/quotes/author/michael-feinstein/) > [Performance matters because games are built on great performance, but form factor and energy efficiency matter incredibly because they want to build something that's…](https://sms4smile.com/quotes/jensen-huang/performance-matters-because-games-are-built-on-great-performance-but/) [Jensen Huang](https://sms4smile.com/quotes/author/jensen-huang/) ## More by John C. Bogle > [The basic idea of retirement income is, to me, to get a check, two checks every month, one from your fixed income and one…](https://sms4smile.com/quotes/john-c-bogle/the-basic-idea-of-retirement-income-is-to-me-to-get-a-check-two/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [When you're young, you've got plenty of time to recover from your mistakes.](https://sms4smile.com/quotes/john-c-bogle/when-you-re-young-you-ve-got-plenty-of-time-to-recover-from-your/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I almost hate to say how proud I am of my career and, most of all, helping folks get the returns they deserve.](https://sms4smile.com/quotes/john-c-bogle/i-almost-hate-to-say-how-proud-i-am-of-my-career-and-most-of-all/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [The Vanguard Experiment was designed to prove that mutual funds could operate independently, and do so in a manner that would directly benefit their…](https://sms4smile.com/quotes/john-c-bogle/the-vanguard-experiment-was-designed-to-prove-that-mutual-funds-could/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [“An investment in knowledge always pays the best interest. Learning is to the Studious, and Riches to the Careful. If a man empties his…](https://sms4smile.com/quotes/john-c-bogle/an-investment-in-knowledge-always-pays-the-best-interest-learning-is/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I liked the so-called Volcker Rule. I would have separated investment banking and commercial, deposit banking, as we did under the Glass-Steagal Act. I…](https://sms4smile.com/quotes/john-c-bogle/i-liked-the-so-called-volcker-rule-i-would-have-separated-investment/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [It's very difficult for any particular segment of the stock market to sustain superior performance. The watch word for our financial markets is, "reversion…](https://sms4smile.com/quotes/john-c-bogle/it-s-very-difficult-for-any-particular-segment-of-the-stock-market-to/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I do think that impact investing is not that effective. Shares go from investor A to investor B, and the company doesn't even know…](https://sms4smile.com/quotes/john-c-bogle/i-do-think-that-impact-investing-is-not-that-effective-shares-go-from/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I was born in an earlier generation and, as a group, my classmates at Blair Academy and Princeton University were as ethical, straightforward, and…](https://sms4smile.com/quotes/john-c-bogle/i-was-born-in-an-earlier-generation-and-as-a-group-my-classmates-at/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [My only regret about money is that I don't have more to give away.](https://sms4smile.com/quotes/john-c-bogle/my-only-regret-about-money-is-that-i-don-t-have-more-to-give-away/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [U.S. companies are innovative and entrepreneurial.](https://sms4smile.com/quotes/john-c-bogle/u-s-companies-are-innovative-and-entrepreneurial/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Successful investing is about owning businesses and reaping the huge rewards provided by the dividends and earnings growth of our nation's - and, for…](https://sms4smile.com/quotes/john-c-bogle/successful-investing-is-about-owning-businesses-and-reaping-the-huge/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Without getting into brothels, there are ethical capitalists the problem is that there aren't enough of them. It is not "just a few bad…](https://sms4smile.com/quotes/john-c-bogle/without-getting-into-brothels-there-are-ethical-capitalists-the/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [The average hedge fund manager is going to earn zero per cent in extra return.](https://sms4smile.com/quotes/john-c-bogle/the-average-hedge-fund-manager-is-going-to-earn-zero-per-cent-in/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [If we wanted something, we had to earn it.](https://sms4smile.com/quotes/john-c-bogle/if-we-wanted-something-we-had-to-earn-it/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) [Explore all 179 John C. Bogle quotes ](https://sms4smile.com/quotes/author/john-c-bogle/) ## More Cold quotes > [Once ye made up yer mind to do somethin', 'tis better t'stumble o'er the small hillock of jump-ahead than t'bash yer head on the…](https://sms4smile.com/quotes/karen-hawkins/once-ye-made-up-yer-mind-to-do-somethin-tis-better-t-stumble-o-er-the/) [Karen Hawkins](https://sms4smile.com/quotes/author/karen-hawkins/) > [When you're scared - and I mean really scared, not just hearing a noise in the night, or standing toe to toe with someone…](https://sms4smile.com/quotes/alexander-gordon-smith/when-you-re-scared-and-i-mean-really-scared-not-just-hearing-a-noise/) [Alexander Gordon Smith](https://sms4smile.com/quotes/author/alexander-gordon-smith/) > [From the bitter cold winter at Valley Forge, to the mountains of Afghanistan and the deserts of Iraq, our soldiers have courageously answered when…](https://sms4smile.com/quotes/solomon-ortiz/from-the-bitter-cold-winter-at-valley-forge-to-the-mountains-of/) [Solomon Ortiz](https://sms4smile.com/quotes/author/solomon-ortiz/) > [When I get a chance to play golf or go on a boat with good people, take the boat out and put some lobsters…](https://sms4smile.com/quotes/bernie-mac/when-i-get-a-chance-to-play-golf-or-go-on-a-boat-with-good-people/) [Bernie Mac](https://sms4smile.com/quotes/author/bernie-mac/) > [Of course Messi could handle a cold Tuesday night in Stoke. He'd be drinking tea and relaxing beforehand. Me? I'd probably be the same.](https://sms4smile.com/quotes/neymar/of-course-messi-could-handle-a-cold-tuesday-night-in-stoke-he-d-be/) [Neymar](https://sms4smile.com/quotes/author/neymar/) > [This cold weather has set all the young Folks to providing Bedfellows. I have signed two or three Licences every Day \[as a Fairfax…](https://sms4smile.com/quotes/george-mason/this-cold-weather-has-set-all-the-young-folks-to-providing-bedfellows/) [George Mason](https://sms4smile.com/quotes/author/george-mason/) > [When my main character in 'Heat' climbs the tower, the highest diving platform, hoping to resume competitive diving after an injury, I am there…](https://sms4smile.com/quotes/michael-cadnum/when-my-main-character-in-heat-climbs-the-tower-the-highest-diving/) [Michael Cadnum](https://sms4smile.com/quotes/author/michael-cadnum/) > [You start playing when it's cold and you want to be playing when it's cold again.](https://sms4smile.com/quotes/jimy-williams/you-start-playing-when-it-s-cold-and-you-want-to-be-playing-when-it-s/) Jimy Williams > [It would be a piece of ingenuousness to accuse the man of today of his lack of moral code. 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We must heal the sick.](https://sms4smile.com/quotes/henrik-ibsen/what-s-to-become-of-the-morally-sound-left-out-in-the-cold-i-suppose/) [Henrik Ibsen](https://sms4smile.com/quotes/author/henrik-ibsen/) > [When I first started, all the reviews of Cold Chisel would say, 'This singer won't have a voice in six months.'](https://sms4smile.com/quotes/jimmy-barnes/when-i-first-started-all-the-reviews-of-cold-chisel-would-say-this/) [Jimmy Barnes](https://sms4smile.com/quotes/author/jimmy-barnes/) > [One of the problems trying to play an instrument outside in the cold is your fingers give up on you and you can't wear…](https://sms4smile.com/quotes/amy-macdonald/one-of-the-problems-trying-to-play-an-instrument-outside-in-the-cold/) [Amy Macdonald](https://sms4smile.com/quotes/author/amy-macdonald/) > [God tempers the cold to the shorn sheep.](https://sms4smile.com/quotes/henri-etienne-sainte-claire-deville/god-tempers-the-cold-to-the-shorn-sheep/) Henri Etienne Sainte-Claire Deville > [Those nights lying alone are not discontinuous with this cold hectic dawn. It is who I am.](https://sms4smile.com/quotes/anne-carson/those-nights-lying-alone-are-not-discontinuous-with-this-cold-hectic/) [Anne Carson](https://sms4smile.com/quotes/author/anne-carson/) [Browse all 5,381 Cold quotes ](https://sms4smile.com/quotes/about/cold/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "We make too much out of past performance, and it's very misleading to investors. It causes them to move money around. They buy a fund that's hot and then it turns cold as all hot funds eventually do. And then they get out. Well, buying at the high and selling at the low isn't going to leave you a satisfied shareholder, right?", "creator": { "@type": "Person", "name": "John C. 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