A Memo from John C. Bogle
Mike - Jun 26, 2014

To: Veterans and Principals

From: John C. Bogle

Date: June 26, 2014

 Recognition for Vanguard and Indexing

            The almost overwhelming success of Vanguard and index funds continues to draw attention, not only from investors (over $77 billion of net cash flow so far this year, 95% of which went into our low-cost index funds), but also from the media. Attached are four recent articles noting our success.

  1. “Bogle Is In The Vanguard Of Mutual Fund Investing,” Investor’s Business Daily, June 12, 2014. This nice profile highlights the triumph of indexing, and Vanguard’s rise to prominence over the last four decades.

 

  1. “Facing price wars and robots, wealth managers push advice,” Reuters, June 20, 2014. I recently participated in the Global Wealth Management Summit hosted by Reuters. This article stems from that summit, and focuses on the growing market for web-based financial advisory services, such as Vanguard’s Personal Advisor Services. Of course, the opening line tickled me: “Jack Bogle, the founder of Vanguard Group and the pioneer of low-cost index investing, has won.”

 

  1. “Vanguard’s Bogle expects shrinking Wall Street,” Reuters, June 17, 2014. This article about my thoughts on the future of the financial industry also came out of the Reuters event.

 

  1. “Philosophy Differs From Strategy,” RickFerri.com, June 16, 2014. Independent financial advisor Rick Ferri writes about how his investment philosophy is based on the realization that trying to beat the markets is “costly and counterproductive,” so his investment strategy relies on low-cost index funds.

With all of Vanguard’s success over our four decades of existence (we’ll celebrate our 40th anniversary on September 24, 2014), it remains critically important that keep our focus on what’s best for our clients. I’ve used this quotation from Shakespeare many times before, “Uneasy lies the head that wears a crown.”

Indeed, Vanguard’s rise to the pinnacle of the mutual fund industry places a fragile crown on our heads. We must continue to focus on our founding values of stewardship and trusteeship of the assets entrusted to us by our clients.

Enjoy your summer.

Best, always,

Jack


Bogle at the 2014 Reuters Wealth Management Summit
Mike - Jun 25, 2014

John Bogle speaks at the 2014 Reuters Wealth Management Summit.


“The Philosopher of Finance”
Mike - Jun 12, 2014

 

Jack has done numerous interviews on NPR, and has found public radio to be an ideal platform for conveying Vanguard’s values to both our clients and the general investing public. His most recent interview, by David Freudberg, host of the Humankind series, was titled “The Philosopher of Finance” and consists of two half-hour segments. In the interview, Jack and David discuss topics regarding human values, as well as issues that are of vital importance for long-term investment success.

The interview will be released as a free podcast today. Instructions on how to access the podcast are below.  I hope you’ll enjoy this discussion of our values and the keys to ensuring a secure retirement.

There are two ways you can hear this program:

1. The public radio producer will be making “The Philosopher of Finance” available for free download at their podcast

Humankind on Public Radio starting at noon on Thursday, June 12, 2014. (Those who subscribe to the podcast will then be able to hear a new episode of Humankind each week at no charge.) The podcast can be accessed here: http://tinyurl.com/HumankindPodcast

2. Those who wish to purchase a CD copy may place an order here:

http://www.humanmedia.org/catalog/program.php?products_id=368


Bogle on CNBC–Cash on the Sidelines???
Mike - Jun 11, 2014