{"id":889,"date":"2013-10-22T07:17:38","date_gmt":"2013-10-22T12:17:38","guid":{"rendered":"http:\/\/johncbogle.com\/wordpress\/?p=889"},"modified":"2013-10-22T07:17:38","modified_gmt":"2013-10-22T12:17:38","slug":"a-memo-from-john-c-bogle","status":"publish","type":"post","link":"https:\/\/johncbogle.com\/wordpress\/2013\/10\/22\/a-memo-from-john-c-bogle\/","title":{"rendered":"A Memo from John C. Bogle"},"content":{"rendered":"

\u00a0October 21, 2013<\/span><\/b><\/p>\n

\u00a0<\/span><\/b>To Veterans and Principals,<\/span><\/b><\/p>\n

\u00a0<\/span><\/b>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The press reports mentioning Vanguard just keep pouring in! Here are a few that may be of special interest.<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>WSJ-1: \u201cGive me a B . . .<\/a>\u201d <\/b>Monday, October 7, 2013. An impressive piece about the Bogleheads coming to visit to our campus. A capacity crowd of 209 Bogleheads joined us on October 16-18, representing a \u201cfan club\u201d that now includes 37,000(!) members.<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>WSJ-2: A Nobel for the Random Walk . . . <\/a><\/b>Tuesday, October 15, 2013. This op-ed piece claimed that \u201cone beneficiary of Mr. Fama\u2019s insight [on the \u2018Efficient Market Hypothesis\u2019] was John Bogle.\u201d Alas, wrong on two counts: (1) I have never accepted the EMH and don\u2019t today. (2) It was Nobel Laureate Paul Samuelson who was the major inspiration for the creation of the first index fund. So . . .<\/span><\/span><\/p>\n

\u00a0<\/span><\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>WSJ-3: Eugene Fama and Efficient Financial Market Theory. <\/a><\/b>Saturday, October 19, 2013. My \u201cno-punches-pulled\u201d response to that op-ed, reaffirming my own CMH (look it up!) and its supremacy. I quickly received an apologetic note from the author of the original piece, reading simply, \u201cI blew it.\u201d<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>WSJ-4: Should You Invest for the Fun of It? <\/a><\/b>Saturday, October 19, 2013.<\/span> <\/b>A long piece of journalism, with numerous quotes from former Vanguard director Burton Malkiel and me. To sum up: \u201c<\/i>funny money\u201d should amount to no more than 5% of your investments . . .<\/i> <\/b><\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>NYT-1: The Erosive Effect of Expenses . . . <\/a><\/b>Wednesday,<\/span> <\/b>October 16, 2013. From a special Times <\/i>section on WEALTH,<\/b> some of my comments on why investors must consider not only the drag of fund expense ratios on their long-term investment returns, but also the \u201chidden\u201d costs of fund portfolio transactions, cash drag, and sales loads and fees for distribution and advice.<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>M*01: Bogle, Buffett, Dad: Readers\u2019 Top Investment Influences. <\/a><\/b>Sunday,<\/span> <\/b>October 6, 2013. From Morningstar\u2019s Christine Benz, yet another poll, this one citing the opinions of investors naming the individuals who\u2019ve had the biggest influence on their investment philosophies. You\u2019ll have to read this short piece to see who it was that edged out the great Buffett for the top spot.<\/span><\/span><\/p>\n

\u00a0<\/span>MF-1: Investing Legend . . . <\/a><\/b>Wednesday,<\/span> <\/b>October 2, 2013. A nice piece that honors Vanguard\u2019s recent 39th<\/sup> birthday, and provides some welcome perspective on index funds, and on staying the course. \u201cThe trick to what I\u2019ve done in investing is I don\u2019t do<\/i> anything. I look, and watch, and observe, and laugh.\u201d<\/b><\/span><\/span><\/p>\n

\u00a0<\/span><\/b>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/b>Whether we should wish it to or not, the spate of positive mentions of our firm and our philosophy seems unlikely to slow down. Phew!<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Best to all,<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Jack<\/b><\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0October 21, 2013 \u00a0To Veterans and Principals, \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The press reports mentioning Vanguard just keep pouring in! Here are a few that may be of special interest. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 WSJ-1: \u201cGive me a B . . .\u201d Monday, October 7, 2013. An impressive piece about the Bogleheads coming to visit to our campus. A capacity crowd […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[15,7,5],"tags":[],"class_list":["post-889","post","type-post","status-publish","format-standard","hentry","category-memos-to-principals-and-veterans","category-op-eds","category-press-clippings"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/johncbogle.com\/wordpress\/wp-json\/wp\/v2\/posts\/889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/johncbogle.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/johncbogle.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/johncbogle.com\/wordpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/johncbogle.com\/wordpress\/wp-json\/wp\/v2\/comments?post=889"}],"version-history":[{"count":1,"href":"https:\/\/johncbogle.com\/wordpress\/wp-json\/wp\/v2\/posts\/889\/revisions"}],"predecessor-version":[{"id":890,"href":"https:\/\/johncbogle.com\/wordpress\/wp-json\/wp\/v2\/posts\/889\/revisions\/890"}],"wp:attachment":[{"href":"https:\/\/johncbogle.com\/wordpress\/wp-json\/wp\/v2\/media?parent=889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/johncbogle.com\/wordpress\/wp-json\/wp\/v2\/categories?post=889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/johncbogle.com\/wordpress\/wp-json\/wp\/v2\/tags?post=889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}