Quote of the day

“Buy and hold is eternal.” –John Bogle, December 19, 2008

Five rules for investing & Bogle’s latest word to investing America: “Don’t peek.”

Chuck Jaffe has another meltdown interview with John Bogle. Don’t peek at your post-peak portfolio “Peek the day you retire,” Bogle said, “and you are going to have so much money, you are going to say ‘What kind of miracle is this!’” Not to doubt Bogle, but anyone who hasn’t looked at the returns of [...]

Bogle: Still not distracted by the market

In his latest interview, John Bogle warns against market timing, stresses the importance of asset allocation, and asserts that US equities are the best investment worldwide. Here is the crux: “I’m happy,” he said in an exclusive interview. “I’m not nervous. I’m wondering why I was stupid enough to have any stock — but everybody [...]

John Bogle on the credit crisis: “We’re letting the nuts run the insane asylum.”

I was happy to see that I could count on John Bogle to have a statistic on market turnover to help make sense of the credit crisis. He has of course always loathed the rapid turnover of securities throughout the year by mutual fund money managers. He has argued at legnth that trading costs matter. [...]

Vanguard boss & money managers accused of racketeering, fiduciary breaches

Where are you now John Bogle? This news reaches us as we commemorate the 5-year anniversary, (almost to the day), of the mutual fund market timing scandals. The Vanguard Group has enjoyed an excellent reputation for providing an even playing field for investors through low fees, passive investment styles and attention to conflicts of interest. [...]

Actively managed ETFs failing to catch on

The campaign for one of the latest investment vehicle “innovations” seems to be stalling. Perhaps investors are siding with John Bogle on this one, and deciding the whole idea is “absurd”. It’s a new genre, but not yet a craze You may have thought a limit had been reached on the number of ways fund [...]

Bogle: Actively managed ETFs “absurd”; ING: Gimmie more

“I can’t imagine anything more absurd than an ETF that is actively managed,” says John C. Bogle, retired founder of The Vanguard Group, the leader in index-style mutual funds and ETFs. Bogle is equally critical of the now-prevalent class of narrowly defined ETFs, which typically focus on stocks of specific industries or countries. “They are [...]

Growth of indexed investments astonishing

Indexation Threatens Mutual, Hedge Funds ETFs seem to be taking on a life of their own. The global market for ETFs will zoom to $2 trillion in 2011 from almost $800 billion now, says Deborah Fuhr, a London-based managing director at Morgan Stanley who advises institutional investors on asset allocation, reiterating an earlier forecast. No [...]

Founder of index fund & boss of central index agree: Mutual fund money managers neither here nor there

It’s the benchmark, not the manager: Bogle urges investors to play the odds Voices of reason: June 7, 2007 SAN FRANCISCO — While offering most investors the best odds of long-term gains, traditional index mutual-funds are increasingly under siege, warned a panel of industry veterans. In a discussion before an audience of investors, analysts and [...]

Video: Bogle on the cost of fund turnover to investors

A classic quote from Warren Buffett seems appropriate here: ”Fund managers are more kinetic than ever: Their behavior makes whirling dervishes appear sedated by comparison. Indeed the term, ”institutional investor” is becoming one of those self-contradictions called an oxymoron, comparable to ”jumbo shrimp” and ”lady mud-wrestler.”