John Bogle on Vanguard Index Funds (video)

Links to 20 highlights of this video: John Bogle on Vanguard Index Funds What a ride! Vanguard index funds have come from a rocky start as they introduced this new concept to the world, to the industry leaders they are today. This interview takes a close look at the business of investment management, and how Vanguard’s index funds compare to the active trading strategy that so many still choose. Here is a summary of the key topics so you can zero-in on what interests you: Vanguard Index Funds as a Disruptive Technology We are all indexers—even the active traders. What happened to long-term investing? Is there anything good about trading stocks? A paid salesman can always beat the index fund. Good managers are in the business of investment management, and not in the business of marketing. Behind the scenes of Vanguard index funds? Is it 5 robots, 3 monkeys and a bunch of data? Is a cap-weighted index fund bad? Are there better indexing schemes? How many index mutual funds should an individual own? What’s too many? What’s too few? Social Security and how much bonds to own? What about financial advisors for those that don’t want to do it themselves? How much should you pay for financial advice? (some eye-opening arithmetic!) Does capitalism mix with the fiduciary duty of managing other people’s money? We have two guarantees in the financial business. When is it appropriate for an individual to buy stocks? Interestingly enough, there are no behaviorisms in the field of stocks generally. When to abandon stocks because loss of faith in team? Is there ever a situation where investor should be happy in a load fund? Do you believe we will have a unified fiduciary standard or not? The company culture that created Vanguard index funds A number of you have commented that you like when I include a transcript. It took quite a while for me to make one  for this video. I tried my best to transcribe accurately, but any errors are mine alone. I hope this transcript will help you spend your viewing time wisely and get the most out of this video production. Here are some links if not mentioned above. Video transcript: John Bogle on Vanguard Index Funds [Tom Gardner, The Motley Fool]: So 39 years ago, almost to the day, a little bit longer than 39 years ago, you started with the Vanguard group—Jack Bogle, one of the heroes at The Motley Fool, for so many different reasons which will come out hopefully in our conversation and it starts with simplicity, clarity, integrity and a solution that is transparent in a financial industry that works so hard against those qualities it seems, many times it seems. So, what was life like for you in 1974? Can you paint a little bit of the picture of what Vanguard was then compared to what it is today? 1. Vanguard Index Funds as a Disruptive Technology [John Bogle, Founder of Vanguard, at 0:32]: Well sure, […]

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