Bogle: Uneasy Lies the Head that Wears the Crown

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Bylo Selhi
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Bogle: Uneasy Lies the Head that Wears the Crown

Post by Bylo Selhi » Fri Oct 29, 2010 2:12 pm

Jack Bogle delivered these remarks at the MFWire.com/FUSE Research Summit in Boston on Tuesday. They're similar concerns to those he expressed at BH9.

Uneasy Lies the Head that Wears the Crown
Recent reports trumpeting Vanguard’s coronation as the world’s largest mutual fund manager was, for me, more a time for reflection than a time for celebration of the ascent to industry leadership of that little company that began in 1974 with $1 billion in assets under management and just 28 crewmembers. Even more, it was a time to place our firm’s achievement in the context of the mutual fund industry’s now-76-year history. Which firms preceded us in holding the industry’s asset-size crown? How long did they wear their crown? Why did they lose it? Who took it from them? Where do they rank today? My research led me to one clear conclusion: Uneasy lies the head that wears the crown...

fcirullo
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Re: Bogle: Uneasy Lies the Head that Wears the Crown

Post by fcirullo » Fri Oct 29, 2010 2:57 pm

Bylo Selhi wrote:Jack Bogle delivered these remarks at the MFWire.com/FUSE Research Summit in Boston on Tuesday. They're similar concerns to those he expressed at BH9.

Uneasy Lies the Head that Wears the Crown
Recent reports trumpeting Vanguard’s coronation as the world’s largest mutual fund manager was, for me, more a time for reflection than a time for celebration of the ascent to industry leadership of that little company that began in 1974 with $1 billion in assets under management and just 28 crewmembers. Even more, it was a time to place our firm’s achievement in the context of the mutual fund industry’s now-76-year history. Which firms preceded us in holding the industry’s asset-size crown? How long did they wear their crown? Why did they lose it? Who took it from them? Where do they rank today? My research led me to one clear conclusion: Uneasy lies the head that wears the crown...


Thank you for posting this! Results matter, and it's likely that Vanguard will wear the crown of world's largest mutual fund manager for a long time.
Frank R. Cirullo | | "It isn't what we don't know that gives us trouble, it's what we know that ain't so." -- | Will Rogers

RadAudit
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Post by RadAudit » Fri Oct 29, 2010 3:47 pm

Mr. Bogle's assessment that few, if any, of its competitors could meet or beat its low cost advantage is correct. And given that it's difficult to beat a low cost competitor in a comodity type market (index funds) - they'll probably be #1 for as long as investors care about cost.

That said, Blockbuster lost out to Netflix because it either didn't know what business it was in (delivering entertainment to individuals) or didn't react to / lead competition. The only thing to learn is - make sure you know what your cutomers really want when you try to provide it to them.
"Everything will be all right in the end. If everything is not all right, then it is not the end." - The Best Exotic Marigold Hotel

HawkeyeMike
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Post by HawkeyeMike » Fri Oct 29, 2010 4:15 pm

Mr. Bogle, has an amazing ability of just laying the facts on the table and challenging us to really think about the way we invest.

It's honest, simple to understand, and I thank him for that.

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