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HERESY....Does Bogle know about this? Does anyone seem it strange that 30% of Bogle's company is comprised of Managed funds and about same percentage of his personal investments are managed....but for you he says buy indexes...go figure...
From my perspective, John Bogle is an investment folk hero of legendary size.
He did not make some minor adjustments to an industry; he transformed it. Vanguard is now the largest mutual fund entity in the US, and Bogle founded it 4 decades ago to initiate the transformation. Vanguard is very appropriately named; it is “the forefront of an action or movement” according to the dictionary.
Bogle lifted the Bell Jar that separated the investing elites on the inside from the general population on the outside. From that general population, he has earned the nickname “Saint Jack”.
He has very consistently recommended an extremely simplified portfolio for the rookie, relatively uninformed investor. He advocates a balanced equity-bond mix using Index products (minimally only two) to contain costs. Few academics would challenge him.
Does Bogle precisely follow this simplified approach? No! His advanced age and his huge wealth prompt him to diverge somewhat into a more complex construction. I adhere to that same divergence for very similar reasons. What exactly does Bogle do? Here is a slightly dated Link that provides some answers titled “Me and My Money”:
I find his commitment to Wellington Management rather charming. He was fired by that outfit in 1974 for a bad decision (something familiar to all of us). That event encouraged his formation of Vanguard and the concept of passive mutual fund products. It is likely that I have owned Wellington almost as long as Saint Jack. Maybe not quite as long.
I surely do not agree with all of Bogle’s investing wisdom (like his often rejection of emerging markets), but I still respect and honor the man for his unsurpassed accomplishments. He is a national treasure.
His uniqueness in the pantheon of the mutual fund industry might be better understood with a more recent Bloomberg interview. Here is that Link:
"Hero worship" at its finest....I used to worship baseball/basketball players....... WHEN I was a immature kid... Now I "worship"..... let me think.......
HERESY....Does Bogle know about this? Does anyone seem it strange that 30% of Bogle's company is comprised of Managed funds and about same percentage of his personal investments are managed....but for you he says buy indexes...go figure...
Tampabay, I'd like to read the source(s) of the information showing that about 30% of Bogle's personal investments are managed.
I'd be quite surprised at this. I know he holds Vanguard Wellington, an actively managed balanced fund.........my guess is that the vast majority of his equity holdings are in the Vanguard Total Stock Market Index fund. He must hold he Vanguard Total Bond Market Index fund, and an investment grade corporate bond index fund.
He has to hold at least one actively managed bond fund, simply because I don't think Vanguard even has a muni bond index fund yet (but soon to come, IIRC).
Appreciate if you will provide the source info for Bogle having 30% of his personal investments in actively managed funds, and as you wrote, "but for you he says buy indexes...go figure..."
Comments
From my perspective, John Bogle is an investment folk hero of legendary size.
He did not make some minor adjustments to an industry; he transformed it. Vanguard is now the largest mutual fund entity in the US, and Bogle founded it 4 decades ago to initiate the transformation. Vanguard is very appropriately named; it is “the forefront of an action or movement” according to the dictionary.
Bogle lifted the Bell Jar that separated the investing elites on the inside from the general population on the outside. From that general population, he has earned the nickname “Saint Jack”.
He has very consistently recommended an extremely simplified portfolio for the rookie, relatively uninformed investor. He advocates a balanced equity-bond mix using Index products (minimally only two) to contain costs. Few academics would challenge him.
Does Bogle precisely follow this simplified approach? No! His advanced age and his huge wealth prompt him to diverge somewhat into a more complex construction. I adhere to that same divergence for very similar reasons. What exactly does Bogle do? Here is a slightly dated Link that provides some answers titled “Me and My Money”:
http://www.reuters.com/article/2012/09/11/us-column-taylor-bogle-idUSBRE88A0LI20120911
I find his commitment to Wellington Management rather charming. He was fired by that outfit in 1974 for a bad decision (something familiar to all of us). That event encouraged his formation of Vanguard and the concept of passive mutual fund products. It is likely that I have owned Wellington almost as long as Saint Jack. Maybe not quite as long.
I surely do not agree with all of Bogle’s investing wisdom (like his often rejection of emerging markets), but I still respect and honor the man for his unsurpassed accomplishments. He is a national treasure.
His uniqueness in the pantheon of the mutual fund industry might be better understood with a more recent Bloomberg interview. Here is that Link:
http://www.bloomberg.com/news/articles/2015-03-11/is-there-a-next-jack-bogle-not-if-you-ask-jack-bogle
Enjoy.
Best Regards.
WHEN I was a immature kid... Now I "worship"..... let me think.......
I'd be quite surprised at this. I know he holds Vanguard Wellington, an actively managed balanced fund.........my guess is that the vast majority of his equity holdings are in the Vanguard Total Stock Market Index fund. He must hold he Vanguard Total Bond Market Index fund, and an investment grade corporate bond index fund.
He has to hold at least one actively managed bond fund, simply because I don't think Vanguard even has a muni bond index fund yet (but soon to come, IIRC).
Appreciate if you will provide the source info for Bogle having 30% of his personal investments in actively managed funds, and as you wrote, "but for you he says buy indexes...go figure..."
thanks a lot