Mike - Mar 01, 2017

To Veterans and Principals


Hi, all, Here are some more press clippings that highlight Vanguard.

1. “Years after surgery, a heartfelt reunion,” Philadelphia Inquirer, February 22, 2017. Thomas Jefferson University hosted a wonderful panel discussion with the two surgeons who performed my heart transplant way back in 1996, Dr. Rohinton Morris and Dr. Louis Samuels. They joined me and Jefferson CEO Stephen Klasko for a discussion on the 21st anniversary of my heart transplant. A standing room only crowd attended the seminar, moderated by students and focused on my transplant experiences and the similar challenges facing investment management and health care.

2. “Jack Bogle doesn’t feel ‘super confident’ about the market rally—here’s why,” CNBC, February 21, 2017. Just before the panel at Jefferson, my interview on CNBC was broadcast live to the audience. In the interview, I talked about the potential strength of the recent market rally, my outlook for stocks over the long term, and my “heart birthday.”

3. “A lesson in investing simplicity: Why the Bogle Model beats the Yale Model,” MarketWatch, February 7, 2017. I am a great admirer of David Swensen, who runs Yale’s highly successful endowment and is the pioneer of “The Yale Model,” which calls for large allocations to illiquid and alternative assets for investors with very long-term time horizons like university endowments. Nonetheless, I read with great delight this article comparing a simple three-index-fund portfolio, dubbed “The Bogle Model,” to the average endowment. Not only did the index funds beat the average endowment and even the top quartile endowments over 3, 5, and 10 years, it even beat the very best—top decile endowments—over 10 years (losing by only a whisker over 3 and 5 years). What a great endorsement of the power of simplicity over complexity—even for some of the world’s most sophisticated investors.

4. “John Bogle: Demise of fiduciary rule would be ‘step backward’ for nation,” InvestmentNews, February 9, 2017. InvestmentNews ran this summary of my recent New York Times op-ed about the Department of Labor’s fiduciary rule. In the op-ed, I referenced a consulting firm’s estimate that Wall Street would lose $20 billion through 2020 as a result of DOL’s rule, which I pointed out the overlooked fact that the $20 billion would go to Main Street investors. I added, “By any definition, that’s a social good.”

5. “The Granddaddy of Indexing,” The Globe and Mail, January 25, 2017. This interview touches on the history of indexing, the current investment environment, and Warren Buffett’s endorsement of indexing, among other topics. But I’m not sure how I feel about the headline—if I’m the “granddaddy of indexing,” who is the father?

6. “The man who transformed investing for Main Street sees a bleak future for Wall Street’s money managers,” Business Insider, January 24, 2017. This extensive interview with journalist Rachel Levy covers a wide range of topics. My conclusion about the asset management business: “We’re paying people to beat the market when they aren’t doing it, and when you think about it, that doesn’t make sense.”

7. “A Love Letter to Jack Bogle,” The Motley Fool, January 8, 2017. I always enjoy spending time with the gregarious Gardner brothers from The Motley Fool. This article is a transcript of a podcast I recorded in December with David. He generously said, “I don’t think anybody … can touch the influence that Jack Bogle has wielded over the investment world. It’s not just that he’s always been a reformer. [It’s] that he’s always tirelessly worked for the common man and for uncommonly good returns for the common man. . . . He’s really democratized investing through the index fund.” Thanks David!

John C. Bogle
March 1, 2017

Bloomberg Markets Cover Story
Mike - Nov 30, 2016

Jack was featured on the cover of the December 2016/January 2017 issue of Bloomberg Markets magazine. In a wide-ranging interview with Michael Regan, Jack discusses the history of index investing from its uncertain beginning to its current triumph, corporate governance, robo-advisers, ESG investing, and which Hollywood actor he would like to play him in a movie.

Q&A With Jack Bogle: We’re in the Middle of a Revolution

Vanguard in the News
Mike - Oct 12, 2016

Vanguard’s recognition in the press continues unabated. Here are some more recent press clippings.

Vanguard’s John Bogle: Ready or Not, an Expanded Fiduciary Rule Is Coming,” Investment News, September 15, 2016. I wrote this op-ed for Investment News in support of the Department of Labor’s recent establishment of a fiduciary standard for all advisers and brokers who advise clients on retirement accounts. My conclusion: “It is in the enlightened self-interest of the distributors, advisers, and brokers for mutual funds to place the interests of investors first. But even if an expanded federal fiduciary standard fails to accomplish this goal, our mutual fund shareholder/clients will ultimately compel this outcome.”

How Vanguard’s Decision to Forgo Profit has Paid Off for Investors,” Washington Post, September 15, 2016. Allan Sloan, former senior editor at Fortune, wrote this column about how Vanguard’s unique, client-owned structure has been incredibly successful both for Vanguard and our clients. Allan observed, “The idea that forgoing profit can be good business is an important lesson that we should all take from the recent celebration of the 40th anniversary of the Aug. 31, 1976, launch of what is now known as the Vanguard 500 Index Fund.” He went on to quote me speaking about the earnings generated by corporate America, “It’s a question of allocating those profits to Main Street rather than to Wall Street. [Our] profits go to the funds’ investors, not to the managers.” [1]

Jack Bogle: Admitting a Mistake Makes You Look Better,” CNBC, September 14, 2016. In the wake of the recent scandal at Wells Fargo, Elizabeth MacBride wrote this article about my belief that trying to cover up a mistake to avoid accountability almost always backfires, while being honest and open about it usually improves your credibility and helps you ultimately move beyond the problem. To be clear, I have refrained from commenting on the ghastly mess that Wells Fargo is now facing up to. My interview with Ms. MacBride took place over two years ago, and she found it relevant to the current situation at Wells Fargo.

They All have One Thing in Common,” The Irrelevant Investor, October 4, 2016. Michael Batnick from Ritholtz Wealth Management wrote this blog post that points out one thing I have in common with the acclaimed investors Seth Klarman, Howard Marks, Warren Buffett, and Phil Fisher: “their ability to clearly communicate their philosophy.” Michael generously appraised one of my books: “His most recent book, Clash of the Cultures, which details how companies went from an investment business to a marketing business, is an excellent read.”

“Fund Legend Still Fighting for Investors,” Kiplinger’s, October 2016. In this interview published in Kiplinger’s, I talk about my 65th anniversary in the mutual fund industry, reasonable expectations for stock and bond returns in the coming years, and the DOL fiduciary rule, among other topics.

Crain 100: 100 Innovators, Disruptors and Change-Makers in Business,” October 2016. Crain Communications celebrated their 100th anniversary in the publishing industry with the “Crain 100” supplement, which recognizes 100 leaders in the industries covered by Crain’s various publications. I am honored to appear right next to Warren Buffett, as you’ll see in the attachment.



[1] The photograph in this story was actually taken, not in 1997, but in 1983. The person on the far right is Jerald L. (“Jerry”) Stevens, who served as president of Vanguard during 1982-1984. It’s a long story, ending with Jerry’s death two years ago at age 73.

Bogleheads XV
Mike - Oct 07, 2016

The Bogleheads held their fifteenth annual celebration of Vanguard’s investment principles on September 28-30. Some 250 of Vanguard’s most loyal and enthusiastic clients heard impressive presentations from the likes of Gus Sauter, Bill Bernstein, Chris McIsaac, Greg Davis, Joe Brennan, John Ameriks, Maria Bruno, and Joel Dickson. My own three parts of the program consumed a total of about 6 hours over the course of two days! My remarks included some 56 slides. If you’re interested, you can find the slides on my website. Here is some of the media coverage of the 2016 Bogleheads conference.

“Meet the Ordinary People Vanguard’s Jack Bogle Made Rich”; “Jack Bogle on the Retirement Crisis, Wells Fargo’s Crackup, and ‘Hamilton’”; “The Case Against ETFs”; and “What Will the Market Bring in 2017? Vanguard’s Best Guesses,” The Street. Nora Morrison from Jim Cramer’s The Street website wrote four articles summarizing my comments as well as those from some of the other speakers at the conference.

Jack Bogle Sounds Off: 10 Provocative New Pronouncements from the Legendary Founder of Vanguard,” and “A Retirement Crisis? There Are Actually Three, Says Vanguard Founder Jack Bogle,” Money. Karen Damato, formerly of the Wall Street Journal, was in attendance and wrote these summaries of my comments at the conference. (NOTE: The term “financial buccaneers” applied not to ETFs as a group, but to those “fringe ETFs” that are designed for speculators.)

What Bogle’s 10-Year Stock Forecast Means for Muni Bond Holders,” Financial Planning. Financial advisor and author Allan Roth, who was also one of the speakers at the conference, wrote this piece about the potential impact lower future returns could have on the municipal bond market.




WSJ Weekend Interview
Mike - Sep 06, 2016

Jack was featured in the Wall Street Journal Weekend Interview on September 4, 2016.



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.




Memo to Veterans and Principals
Mike - Dec 08, 2015

To: Veterans and Principals
From: John C. Bogle
Re: Vanguard in the News
Date: December 3, 2015

Hi All,

Favorable press coverage of our firm seems to be growing just as rapidly as our cash flow. (Well, maybe not quite as fast!) I’m attaching five of the more important news stories with this note.

1. “Vanguard’s Gain is Wall Street’s Pain.” Bloomberg Business, December 1, 2015. I urge all of you to read this remarkably perceptive article by veteran journalist Eric Balchunas. It discusses the often taboo subject of our impact on the entire field of investment, estimating that by 2020 we will have reduced Wall Street’s revenues by $40 billion per year. (Actually, that figure is underestimated.)

2. “The George Washington of Investing Wants You For The Revolution.” NPR’s Chris Arnold wrote this story in connection with his radio segment about me for NPR’s Morning Edition, which you can listen to here. Chris wrote a companion piece about asset allocation, with suggestions from David Swensen, me, and Gretchen Tai of Hewlett-Packard.

3. “John Bogle’s legacy: Falling prices everywhere.” On November 19, 2015, Mitch Tuchman of MarketWatch again refers to “the Vanguard Effect”—the impact of our low pricing strategy on our peers. He concludes: “If better, cheaper advice along with falling prices for funds in a race to the bottom, bring it on!”

4. “The best strategy for everyday investors, according to investing legend Jack Bogle.” In Business Insider, on November 3, 2015, Kathleen Elkins concludes: “Set yourself up for financial success by investing in low-cost index funds.”

5. “Cost Always Matter, So Pick This Winning Read.” Financial adviser Nick Train, writing in FT Adviser on October 29, 2015, quotes at length from the recently published “Classic Edition” of John Bogle on Investing—The First 50 Years. (Curiously, he doesn’t get around to mentioning the name of the book.) He shares my view that “picking winners is a loser’s game.”

Please enjoy this continuing stream of affirmation for the work we do—you and I alike—to serve investors with excellence.


Memo to Veterans and Principals
Mike - Dec 08, 2015

To: Vanguard Veterans and Principals
From: John C. Bogle
Date: September 4, 2015
Re: Vanguard in the Press

Things didn’t slow down much this summer, and I’m pleased to attach another eight stories of special interest.
(1) “The Power of Story,” Forbes, August 22, 2015. It’s always nice to be compared to a genius—in this case Albert Einstein. Here, we are both cited for, “a compelling narrative that inspires a shared sense of mission . . . [and] a long and great legacy.” If the story is valid, it is up to you who lead our crew to determine how long, and how great.

(2) “. . . king of the tracker funds,” The (London) Telegraph, July 30, 2015. (Yes, that’s a young me, age 39, in the photo.) Our John Woerth handled the story with journalist Ed Monk, but later had to correct two errors. “. . . born out of corporate frustration” should read “corporate conflict.” And . . . “go gently into that good night” should read “go gentle.”

(3) “Why 99% of trading is pointless,” MarketWatch, July 30, 2015. Here, journalist Mitch Tuchman puts his own harsh spin on my long-standing view that stock trading is a loser’s game for investors and a winner’s game for brokers.

(4) “The super secret weapon of CEOs,” BBC, July 15, 2015. In Elizabeth MacBride’s view, that super secret weapon is poetry, helping leaders to “adopt a certain way of thinking about . . . broad concepts and challenges.” Her first example cites me and “Ozymandias” (read the story), and my concept that “caring . . . must be the soul of any institution worth its salt.”

(5) “Has the Index Fund Won?” Money, August 2015. All of us at Vanguard know the answer to that question, and I reaffirm it in this interview. “It certainly has.” While some of my responses to journalist Pat Regnier are apparently controversial, none of them are new, and most of them—on ETFs, international allocations, cost, and transparency—reflect positions that I’ve publically held for at least two decades.

(6) (7) (8) Three stories on the recent unpleasantness in the stock market: CNBC on August 24, Market Watch on August 27, and on CNBC again on August 28, 2015. My message remains consistent (“Stay the Course”), but cautious (in this case to Elizabeth MacBride on CNBC), “. . . stay invested, control your fear, and keep your fingers crossed.”

Hope you all had a great summer.


Memo to Veterans and Principals
Mike - Dec 08, 2015

To: Veterans and Principals
From: John C. Bogle
Date: July 15, 2015
Subject: The Press Coverage Continues

1. FORTUNE, June 16, 2015. “Investors first is slowly taking hold in finance.” This article by Eleanor Bloxham begins with a review of my June speech to CFA/Philadelphia, and then discusses the messages in two of my early books, recently republished as “Classic Editions” with new forewords. (Yes, we’re making arrangements to offer them together to the crew in a “boxed” package.)

2. FORBES, June 29, 2015. “Tiger’s Lair: Inside Vanguard Founder Jack Bogle’s Busy Office.” Some insightful comments. But one more photo of my desk chair—empty—gives me the willies.

3. MARKET WATCH, June 18, 2015. “ . . . Insight that triples retirement returns.” Solid insights by Mitch Tuchman, focused on one of Vanguard’s founding principles: Seek “relative predictability” (to comparable peers) in fund performance, and win with our huge cost advantage.

4. BUSINESS INSIDER, July 8, 2015. “Investing pros John Bogle, Warren Buffett, and Charlie Munger all agree on the best way for the average person to invest.” (I don’t think I need tell you what that way is!) It’s always fun to have Vanguard 500 Index Fund endorsed by experienced experts such as Warren and Charlie.

Enjoy! Hope you are having a good summer.


Memo to Veterans and Principals
Mike - Dec 08, 2015

To: Veterans and Principals

From: John C. Bogle

Date: June 11, 2015

RE: Vanguard in the News

(1) I’m delighted to start this list of news stories with a splendid full-page essay in the Financial Times on May 27, 2015; Investment: Vanguard’s Commanding Position, by Stephen Foley. You’ll be familiar with many of the events he describes but perhaps less so with the history of the nautical theme that is not only featured, but described at length. NOTE: The online version of the Financial Times article was accompanied by a wonderful video focused on our nautical heritage. It’s short and worth watching. Click here to view the video.

(2) John Rekenthaler’s Morningstar essay, Jack Bogle’s Great Insight, June 11, 2015. In our interview, John quickly picked up on one of Vanguard’s founding pillars! Offering funds with relative predictability, designed to parallel the competitive peer groups, avoiding the performance saving that provide elation to investors and then disappointment (as cash pours out). The idea: to help investors avoid the behavioral problems so often engendered by moving from one fund to another.

John cites our Vanguard Total Stock Market Index Fund as the classic example of relative predictability (now known as high R2, measured by fund returns relative to its comparable index(es) or peers). Of course that’s true. But he fails to mention the high R2s of most of our actively managed funds . . . Wellington 0.97, Wellesley 0.96, Morgan 0.98, Strategic Equity 0.98, Windsor II 0.97, Windsor 0.95, even PRIMECAP 0.93 and Health Care 0.92. Our major municipal bond funds came in at 0.98 and 0.97. This is no accident, merely the result of a multi-manager strategy and (to a lesser extent) the right portfolio standards we demand of many of our active managers.

(3) Why Bogle and Buffett tell investors to ignore market noise, Market Watch, June 4, 2015, by Mitch Tuchman. You all know this consistent message; the photos are sort of clever.

(4) Vanguard ties help Wellington buck weak trend in active funds, Reuters, May 29, 2015, by Ross Kerber. Wellington Fund has for many years been a successful performer for its fund shareholders—and even better for Wellington Management Company. See final paragraph, which raised some provocative questions.

(5) Low cost is just the first step in picking funds: Bogle. A lengthy interview with me by Elizabeth MacBride, posted on CNBC’s website on May 26, 2015. Lots of interesting insights, plus the (obligatory?) “five rules” for selecting an actively managed fund.

NOTE: Interesting Item of the Week. In my last mailing, I suggested that the photo of me in the casino must have been photo shopped. It was! As one veteran crew member informed me, the image was from a promotional piece for the film “Casino,” with my face replacing that of its star, Robert deNiro.

The beat goes on. Enjoy!