Vanguard’s Principles

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Always passive
Posts: 300
Joined: Fri Apr 14, 2017 4:25 am
Location: Israel

Vanguard’s Principles

Post by Always passive » Tue Jan 23, 2018 1:49 pm

I just received an annual report of a Vanguard fund. I seldom read them, but this time the very first page caught my attention. I think that we have all heard this more than once, but Vanguard does a great job. Here it is:

Vanguard’s Principles for Investing Success
Goals. Create clear, appropriate investment goals.
Balance. Develop a suitable asset allocation using broadly diversified funds.
Cost. Minimize cost.
Discipline. Maintain perspective and long-term discipline.

A single theme unites these principles. Focus on the things you can control.

I think that you need nothing else to build wealth.

Jack FFR1846
Posts: 7627
Joined: Tue Dec 31, 2013 7:05 am

Re: Vanguard’s Principles

Post by Jack FFR1846 » Tue Jan 23, 2018 1:55 pm

Something that could help, I think:

Transparency: Although not legally required, disclose the compensation of all Vanguard directors and executives.
Bogle: Smart Beta is stupid

User avatar
cinghiale
Posts: 1142
Joined: Wed Oct 17, 2007 4:37 pm

Re: Vanguard’s Principles

Post by cinghiale » Tue Jan 23, 2018 2:10 pm

JackFFR1846 wrote,
Something that could help, I think:

Transparency: Although not legally required, disclose the compensation of all Vanguard directors and executives.
I would think that Vanguard’s expense ratios provide an acceptable surrogate for some grand effort at transparency. The total bond index fund charges an almost silly 0.05%. Total stock? 0.04%. I don’t know what kind of compensation the execs and directors receive, but I do know that the pie that supplies the salary and bonus slices isn’t very big. Seems good enough to me.
"We don't see things as they are; we see them as we are." Anais Nin | | "Sometimes the first duty of intelligent men is the restatement of the obvious." George Orwell

Post Reply