Unfortunately, we don’t have Jack Bogle “around to calm us down anymore,” writes Wealth Logic founder Allan Roth in a recent Financial Planning magazine article. Roth, a long-time follower of Bogle, offers a hypothetical interview with the late founder of The Vanguard Group that he created based on an actual interview from 13 years ago, during what Roth describes as “the depths of the last bear.” Here are the takeaways from Bogle’s hypothetical “responses”: Take… Read More
A recent Fortune article by Ritholtz Wealth Management’s Ben Carlson argues that the past decade’s strong stock performance has been “almost exclusively driven by fundamentals, much to the chagrin of the perma-bears who blame everything that’s happened on the Fed.” Carlson describes a formula created by the late-Jack Bogle that “allows us to check on the recent and historical fundamentals of what has been driving the rise of U.S. stocks.” He explains that Bogle broke… Read More
A recent article in Forbes describes the late John Bogle as “dogmatic and rigid” and a “sanctimonious scold.” But, it adds, “he was right.” Referring to Bogle as the “titan of low-cost investing,” the article offers an overview of his long and fascinating career and his consistent preaching that investing costs matter, more than past performance. Bogle’s thesis—that if you hire a money manager to beat the market (paying fees whether or not they do)—eventually… Read More
On January 16th, Vanguard announced the passing of its founder, often called the “father of indexing,” on the firm’s site: Mr. Bogle earned near-legendary status in the American investment community, it said, primarily due to the following achievements: He introduced the first index mutual fund for individual investors and, in the face of skeptics, stood behind the concept until it gained widespread acceptance. He drove down costs across the mutual fund industry by ceaselessly campaigning… Read More
In a Bloomberg Radio interview earlier this month, Vanguard Group founder Jack Bogle shared a pessimistic view on the future of U.S. pension funds. According to the Bloomberg account of the interview, Bogle believes that over the next decade a conservative portfolio of stocks and bonds will not be able to “meet their 7.5 percent or 8 percent obligations.” Instead, he argues, annual returns will be closer to 3 percent for bonds and 4 percent… Read More
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 last installment of our series outlining highlights of the essay. Bogle outlines some of the advice he has offered his clients over the years: Invest you must. Bogle says that the… Read More
An essay by Vanguard founder Jack 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 fourth installment of a five-part series outlining highlights of the essay. Bogle outlines “characteristics and attitudes” that he has championed and nurtured over his 65-year career to maintain balance between his… Read More
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 third installment of a five-part series outlining highlights of the essay. Bogle uses the examples of Adam Smith and Benjamin Graham, trailblazers in professional investing, to illustrate the evolution of the… Read More
In a recent article for Forbes, Validea CEO John Reese recounts some rules for investment outlined by Vanguard’s Jack Bogle in his 2012 book The Clash of the Cultures: Investment vs. Speculation, and how they apply to the everyday investor: Remember Reversion to the Mean: The theory in finance that, over time, a stock’s price will tend to move back to its average. “The trouble comes,” says Reese, “when investors try to predict when such… Read More
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 second installment of a five-part series outlining highlights of the essay. These are some of the pressures that Bogle argues impedes the balance between profession and business: New technologies: The lower… Read More