A Memo from Jack Bogle
Mike - Jun 17, 2016

To:       Vanguard Veterans and Principals

From:   John C. Bogle

Date:    June 17, 2016

Re:        Vanguard in the News

Hi, All,

Vanguard continues to be mentioned frequently in the news. Here are some recent clippings.

  1. “Index We Trust,” The Economist, June 11-17, 2016. A nice profile of Vanguard in The Economist, highlighting our success in both the marketplace and in bringing down the costs of investing for our clients. An unnamed competitor summarized the situation well by saying, “How are we supposed to compete when there’s a non-profit disrupting the game?” Vanguard is well-positioned to continue disrupting the industry, and I suspect few will truly want to compete with us on costs. (Today, only Fidelity and BlackRock do, and only with their index funds.)
  2. “Vanguard Founder Jack Bogle Talks about Taxes, Investing, and the Election,” Forbes, June 15, 2016. I recently spoke with Forbes about the 2016 presidential election and its implications for the markets. I stand by my claim that this election cycle is “the most chaotic in recent memory.”
  3. “For John Bogle, Wall Street Is the Problem, Not Stocks,” Market Watch, June 16, 2016. Mitch Tuchman picked up on my recent letter to the editor of the Wall Street Journal and my interview with John Waggoner. (You received both pieces in my previous mailing.) Tuchman highlights my emphasis on low costs and transparency, as well as my criticism that much of the activity on Wall Street involves trading securities back and forth—with Wall Street taking a cut of each trade—rather than capital formation, its true raison d’être.
  4. “Bogle Says Prepare for Stocks, Bonds to Miss Historical Returns,” Bloomberg, June 15, 2016. I recently appeared on Bloomberg Radio and reiterated my belief that it is highly likely that returns on stocks and bonds during the coming decade will be significantly less generous than they have been in the past.

 

Best,

Jack