To: Veterans and Principals
From: John C. Bogle
Date: September 9, 2014
Re: Will it ever stop?
The more that I expect it to slow down, the more the attention given to Vanguard in the media seems to speed up. Enclosed are some more recent articles highlighting our success and commitment to clients.
- Investors Pour Into Vanguard, Eschewing Stock Pickers, by Kirsten Grind, The Wall Street Journal, August 20, 2014. This article points out an upcoming milestone for Vanguard: $3 trillion in global assets under management. Also highlighted is Warren Buffett’s recommendation of Vanguard 500 Index Fund for his wife’s investment portfolio, and the $5 billion of cash flow it helped to generate for the fund. It also includes my quip in an email to Warren that I am now described as, “the second best salesman at Vanguard.”
- Vanguard’s Rise To No. 2 ETF Firm Matters, by Olivier Ludwig, ETF.com, August 19, 2014. In this generous article, Olly Ludwig anticipates that Vanguard will soon take over the second ranking in U.S. ETF market share. He comments that, “the reason we should all celebrate the rise of Vanguard and Vanguard ETFs is because it shows that investors are truly getting a fair shake.” He concludes, “we really should be thankful that 40 years ago John Bogle thought the time was right to truly put investors’ interests first.”
- Review of The Man in the Arena, by Murad J. Antia, CFA, Financial Analysts Journal, July/August 2014. This highly complimentary review of The Man in the Arena, the recent book about my legacy in the mutual fund industry, edited by Knut A. Rostad, concludes: John C. Bogle … has been at the forefront of the revolution that has democratized the investment landscape by first creating a mutual organization, a company owned by its investor clients. He has tirelessly imparted the message that investors would be far wealthier if they invested in low-cost index funds. Yes, that’s the Vanguard message.
- Fund Scandal Ripples, Even a Decade Later, by Tom Lauricella, The Wall Street Journal, September 8, 2014. This article recalls the mutual fund market-timing scandals of a decade ago. I am quoted in the article as saying that the fund industry’s focus on investors “has improved, but we still have a long way to go.”
- Think of Social Security As an Investment, Says Vanguard Founder, by Dan McSwain, U-T San Diego, September 6, 2014. In this extensive interview, the journalist describes my views about indexing and the importance of low costs for long-term investors. Also discussed is my view that Social Security must be taken into account by investors when constructing their asset allocations.
- 3 Smart Moves for Retirement Investors from the Bogleheads, by Penelope Wang, Money, August 18, 2014. This feature article points out that the second edition of The Bogleheads’ Guide to Investing is being released, and shares some tips for developing an effective investment strategy. Says one of the unofficial leaders of the Bogleheads, Mel Lindauer, “one of the main advantages of being a Boglehead—we remind people to stay the course.”
When you have a spare moment (?), please enjoy these stories, and feel free to send copies of this note and the attachments to your colleagues and friends. As usual, by week’s end, they’ll also be published on my eBlog, www.johncbogle.com.
Welcome back from what I hope has been a refreshing summer vacation for you and your families.
Best,
Jack