Jack Bogle answers 5 questions in this interview by Ben Steverman of Bloomberg. Bogle offers the best advice he ever received, his views on the current market, and mentions the biggest problem facing the industry today.
He says "The fund industry has turned into a marketing business, and the important thing is getting a lot of assets under management. It’s run for the benefit of financial conglomerates that own most of the large mutual fund management companies."
Most of you know Bogle's story. He founded Vanguard and established an S&P 500 Index fund. The Street referred to it as "Bogle's Folly." That is until it became one of the largest funds in the world. Today, of course, every major fund provider has a similar fund - which should tell you something. Still, it is not something pushed by the fund providers - they would rather naive investors go into their money-making (for the fund providers, not the customers) active funds.
Thoughts and observations for those investing on their own or contemplating doing it themselves.
If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at http://www.rwinvestmentstrategies.com. If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.
Wednesday, September 28, 2011
Bogle Answers Five Questions
Posted by Robert Wasilewski at 7:37 AM
Labels: DIY investing. DIY newbie, index funds, Jack Bogle, Vanguard
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Bogle is a model of consistency in his beliefs. Thank goodness he founded Vanguard as a mutual company owned by the Shareholders. I believe the trend still continues that it is more profitable to invest in the stocks of mutual fund companies than in their funds, even for those mutual fund companies that have some ethics.ReplyDelete
"The fund industry has turned into a marketing business" - no wonder the stocks of fund companies do better than the funds they offer!ReplyDelete