"Has the Index Fund Won?" by Jack Bogle

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Taylor Larimore
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"Has the Index Fund Won?" by Jack Bogle

Post by Taylor Larimore »

Bogleheads:

The August issue of Money Magazine has a three page interview with Jack Bogle plus a full-page picture of our mentor. I was unable to find a link, but I will share a few of his quotes:
"Index Funds had a fabulious year last year. Vanguard's flagship Total Stock Market Index Fund earned 12.4%, vs. an average of 7.8% for domestic stock funds."

"You shouldn't buy an index fund because you think it's a hot performer. Buy it because you're going to hold it forever."

"I think American business and the American economy are going to be the strongest in the world. I think we have more innovation. I think we have better technology. And I know we have a better legal structure, better shareholder protections."

"You have to invest, but you can't control the returns. And you should know that if you do stretch for higher returns, you'll be taking on extra risk."

"We've over-analyzed the whole thing (diversification and correlations). I'm always the apostle of simplicity and lower costs."

"The point of the Vanguard structure is to eliminate the management company's profit."

"I designed the best company that I could design. But there are ways to make it better."

"99% of what we do in this industry is people trading with one another, with a gain only to the middleman."
Thank you, Mr. Bogle.

Best wishes
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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ofcmetz
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Re: "Has the Index Fund Won?" by Jack Bogle

Post by ofcmetz »

Thanks for telling us about the article and the quotes. I like the reminders I get with I log on here as to why I use index funds and don't try to trade. I don't think I will hold them forever, but I at least plan to hold them until I need to sell for income in retirement.
Never underestimate the power of the force of low cost index funds.
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JoMoney
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Re: "Has the Index Fund Won?" by Jack Bogle

Post by JoMoney »

It really is a nice article, I wish there was more depth in some of the comments Mr. Bogle made, it was very interesting.
I was able to read it online through a public library resource that subscribes to a service for researching periodicals. If you're a member of a public library, it might be a 'free' option to read the article depending on what services your library has/subscribes to.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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abuss368
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Re: "Has the Index Fund Won?" by Jack Bogle

Post by abuss368 »

Hi Taylor,

I read the excellent interviews with Jack. In the one, he really was not supportive of international investing.

Thank you Jack Bogle for creating Vanguard!

Best.
John C. Bogle: “Simplicity is the master key to financial success."
Beliavsky
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Re: "Has the Index Fund Won?" by Jack Bogle

Post by Beliavsky »

Taylor Larimore wrote:Bogleheads:

The August issue of Money Magazine has a three page interview with Jack Bogle plus a full-page picture of our mentor. I was unable to find a link, but I will share a few of his quotes:
"Index Funds had a fabulious year last year. Vanguard's flagship Total Stock Market Index Fund earned 12.4%, vs. an average of 7.8% for domestic stock funds."

"You shouldn't buy an index fund because you think it's a hot performer. Buy it because you're going to hold it forever."

"I think American business and the American economy are going to be the strongest in the world. I think we have more innovation. I think we have better technology. And I know we have a better legal structure, better shareholder protections."
There may be a tendency for people to overestimate the virtues of the countries they live in.
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DonCamillo
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Re: "Has the Index Fund Won?" by Jack Bogle

Post by DonCamillo »

ofcmetz wrote:Thanks for telling us about the article and the quotes. I like the reminders I get with I log on here as to why I use index funds and don't try to trade. I don't think I will hold them forever, but I at least plan to hold them until I need to sell for income in retirement.
I want to hold my index funds forever. But I have yet to figure out how to live that long. :D
Les vieillards aiment à donner de bons préceptes, pour se consoler de n'être plus en état de donner de mauvais exemples. | (François, duc de La Rochefoucauld, maxim 93)
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abuss368
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Re: "Has the Index Fund Won?" by Jack Bogle

Post by abuss368 »

DonCamillo wrote:
ofcmetz wrote:Thanks for telling us about the article and the quotes. I like the reminders I get with I log on here as to why I use index funds and don't try to trade. I don't think I will hold them forever, but I at least plan to hold them until I need to sell for income in retirement.
I want to hold my index funds forever. But I have yet to figure out how to live that long. :D
Priceless!
John C. Bogle: “Simplicity is the master key to financial success."
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