John Bogle on the Balance Between Professional and Business Values in Investing—Part 1

An essay by Vanguard founder John Bogle, published in a recent issue of the CFA Institute’s Financial Analysts Journal, offers insights and guidance concerning the need for balance between professional values and business values in the world of investing and finance. This is the first installment of a five-part series providing highlights of the essay. Bogle cites a 2005 article in which Harvard professor Howard Gardner and Carnegie Foundation president Lee Shulman argue: “The primary… Read More

When Choosing Fund Managers, Maybe Less is More

It may pay to go for mediocre rather than stellar when selecting fund managers, according to last week’s post in Enterprising Investor by Joachim Klement, CFA. While studies have shown that investors gravitate toward funds that have performed well versus their peers, Klement suggests that more sophisticated investors (such as pension funds) might be expected to apply more complex analysis. This isn’t always the case, however. According to Klement, expert fund selectors such as those… Read More

CFA Panelists: Economic Bears, Stock Market Bulls

The CFA Institute held its Global Financial Crisis Roundtable Thursday, with institutional expert Theodore Aronson, Goldman Sachs’ Abby Joseph Cohen, bond expert Martin Fridson, and economist Jason Trennert speaking in a panel discussion moderated by The Wall Street Journal’s Jason Zweig. U.S. News & World Report’s Kirk Shinkle offers the following observations from the hour-plus discussion: “Cohen made it clear she thinks that many (though not all) markets have fallen enough to make new opportunities… Read More