John C. Bogle Quotes
John C. Bogle Quotes
Without getting into brothels, there are ethical capitalists the problem is that there aren’t enough of them. It is not “just a few bad apples” that have been evident in our corporations, our investment bankers and our mutual funds, but so many that one has to concede that the barrel itself needs some work.
The grim irony of investing, then, is that we investors as a group not only don’t get what we pay for, we get precisely what we don’t pay for. So if we pay for nothing, we get everything.
It’s 1450 out of 1500 ETF funds that I just wouldn’t touch because they’re not diversified enough. Or they have some huge speculative twist to them that if you can guess the markets right you will do very well for a day or two but who can do that? Nobody.
Our capitalistic scheme in the latter years of the 20th century seems to have lost its way. We’ve had a “pathological change” from traditional owners capitalism where most of the rewards have gone to those who make the investments and assume the risks to a new and deeply flawed system of managers capitalism where the managers of our corporations our investment system, and our mutual funds are simply take too large a share of the returns generated by our corporations and mutual funds leaving the last line investors – pension beneficiaries and mutual fund owners at the bottom of the food chain.
Thomas Aquinas defined the human soul as the core of our being, and the power that brings our characteristics into unity so the soul of capitalism – in its own temporal world as contrasted to the spiritual world of human beings – is what defines the core of the system and the factors that unify to produce the wonderful world that we are blessed to live in.
We need a federal government commission to study the way our financial services system is working – I believe it is working badly – and we also need more educated investors. There are good long term low-priced mutual funds – my favorite is a total stock market index fund – and bad short term highly priced mutual funds. If investors would get themselves educated, and invest in the former – taking their money out of the latter – we would see some automatic improvements in the system, and see them fairly quickly.
The general systems of money management today require people to pretend to do something they can’t do and like something they don’t. It’s a funny business because on a net basis, the whole investment management business together gives no value added to all buyers combined. That’s the way it has to work. Mutual funds charge two percent per year and then brokers switch people between funds, costing another three to four percentage points. The poor guy in the general public is getting a terrible product from the professionals.
The general systems of money management today require people to pretend to do something they can’t do and like something they don’t. It’s a funny business because on a net basis, the whole investment management business together gives no value added to all buyers combined. That’s the way it has to work. Mutual funds charge two percent per year and then brokers switch people between funds, costing another three to four percentage points. The poor guy in the general public is getting a terrible product from the professionals.
I believe that the mutual fund industry’s biggest shortcoming is too much focus on the momentary price of a stock – an illusion – and too little focus on the intrinsic value of the corporation – the ultimate reality. I’m comforted by the fact that Warren Buffett feels the same way.
Surprise! The returns reported by mutual funds aren’t actually earned by mutual fund investors.
I believe Washington should be a more active participant focusing on the issue of why corporate shareholders and mutual fund shareholders are not given fair treatment by corporate management and mutual fund management. We need to develop a national standard of fiduciary duty to ensure that these agents, if you will, are adequately representing the principles – pension beneficiaries and mutual fund shareholders – whom they are duty bound to serve.
The fund scandals shined the spotlight on the fact that mutual fund managers were putting their interests ahead of the fund shareholders who trusted them, which had much more substantial consequences in the form of excessive fees and the promotion – as the market moved into the stratosphere – of technology funds and new economy funds which were soon to collapse.
The idea that a bell rings to signal when investors should get into or out of the stock market is simply not credible. After nearly fifty years in this business, I do not know of anybody who has done it successfully and consistently. I don’t even know anybody who knows anybody who has done it successfully and consistently. Yet market timing appears to be increasingly embraced by mutual fund investors and the professional managers of fund portfolios alike.
Yes, the investor is often his own worst enemy. Yes, the marketing colossus known as the mutual fund industry provides the weaponry which enables investors’ to indulge their suicidal instincts. No, the fund industry was hardly an innocent bystander in the market boom and the subsequent carnage. “We have met the enemy and he is us” . . . all of us.
Our capitalistic scheme in the latter years of the 20th century seems to have lost its way. We’ve had a “pathological change” from traditional owners capitalism where most of the rewards have gone to those who make the investments and assume the risks to a new and deeply flawed system of managers capitalism where the managers of our corporations our investment system, and our mutual funds are simply take too large a share of the returns generated by our corporations and mutual funds leaving the last line investors – pension beneficiaries and mutual fund owners at the bottom of the food chain.
Fund investors are confident that they can easily select superior fund managers. They are wrong.
We need a mutual fund industry with both vision and values; a vision of fiduciary duty and shareholder service, and values rooted in the proven principles of long-term investing and of trusteeship that demands integrity in serving our clients.
The mutual fund industry has been built, in a sense, on witchcraft.
Among my greatest disappointments about the mutual fund industry – in addition to excessive costs and excessive focus on the short-term – is that fund managers have been passive participants in corporate governance.
The principal role of the mutual fund is to serve its investors.
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John C. Bogle Quotes about Capitalism
I think it’s fairly easy to provide a moral defense of capitalism. It has been – over the last 200 years – the underlying basis for enormous increases in productivity and human welfare and rising living standards, particularly in the United States, and in the industrialized nations but in fact, in most parts of the world.
I’d be the first to agree that capitalism bestows its blessings unevenly. But that wouldn’t persuade me to think it was a good idea to do away with those blessings in their entirety. That said, there is lots of work to be done to make capitalism work better, and to broaden its blessings far more widely not only in America, but all over the globe.
Capitalism is not a Ponzi scheme. Capitalism is a scheme of free markets.
While I haven’t read economist Robin Hansel’s work, replacing capitalism would be at the very bottom of my list of priorities – to be considered only after everything else had been tried. Improving our capitalistic system however, is at the top of my list and is of course the major theme of “The Battle for the Soul of Capitalism.
John C. Bogle Quotes on Life
Rely on the ordinary virtues that intelligent, balanced human beings have relied on for centuries: common sense, thrift, realistic expectations, patience, and perseverance.
John C. Bogle Quotes about Economy
The fund scandals shined the spotlight on the fact that mutual fund managers were putting their interests ahead of the fund shareholders who trusted them, which had much more substantial consequences in the form of excessive fees and the promotion – as the market moved into the stratosphere – of technology funds and new economy funds which were soon to collapse.
We are facing incredible challenges in the economy of the U.S. and the economy of the globe, but the stock market, we never know whether it’s over-discounted or under-discounted or got exactly right its anticipation.
The multiple failings of our flawed financial sector are jeopardizing, not only the retirement security of our nation’s savers but the economy in which our entire society participates.
John C. Bogle Quotes about Winning
If you’re very talented and keep winning, you’ll do just fine. It may take a while. But the talent is hard to identify and talent is hard to tell from luck. There’s an awful lot of luck in this business. Past performance is not helpful in judging future performance.
If the data do not prove that indexing wins, well, the data are wrong.
In Las Vegas we all know that it’s the croupiers who win. At the race track, it’s those who control the handle who win. State lotteries, does anybody think the participants in the lottery win? No. The state wins.
John C. Bogle Quotes about Pensions
We need to reorganize our entire system of retirement plan investing and to develop federal standards of fiduciary duty for pension trustees and fund managers. These require “top down” intervention. But we also need investors to look after their own economic interests, a bottom up approach to our problems that is well within our individual power to undertake.
Our capitalistic scheme in the latter years of the 20th century seems to have lost its way. We’ve had a “pathological change” from traditional owners capitalism where most of the rewards have gone to those who make the investments and assume the risks to a new and deeply flawed system of managers capitalism where the managers of our corporations our investment system, and our mutual funds are simply take too large a share of the returns generated by our corporations and mutual funds leaving the last line investors – pension beneficiaries and mutual fund owners at the bottom of the food chain.
I believe Washington should be a more active participant focusing on the issue of why corporate shareholders and mutual fund shareholders are not given fair treatment by corporate management and mutual fund management. We need to develop a national standard of fiduciary duty to ensure that these agents, if you will, are adequately representing the principles – pension beneficiaries and mutual fund shareholders – whom they are duty bound to serve.
John C. Bogle Quotes about Focus
I believe that the mutual fund industry’s biggest shortcoming is too much focus on the momentary price of a stock – an illusion – and too little focus on the intrinsic value of the corporation – the ultimate reality. I’m comforted by the fact that Warren Buffett feels the same way.
Among my greatest disappointments about the mutual fund industry – in addition to excessive costs and excessive focus on the short-term – is that fund managers have been passive participants in corporate governance.
I believe that the behaviour of too many of our corporations investment bankers and fund managers has jeopardized some of the trust that investors have had. It’s not the economic engine that we need to focus on, but the need to make sure that our investors receive their fair share of the returns that that great economic system produces.
John C. Bogle Quotes about Values
I believe that the mutual fund industry’s biggest shortcoming is too much focus on the momentary price of a stock – an illusion – and too little focus on the intrinsic value of the corporation – the ultimate reality. I’m comforted by the fact that Warren Buffett feels the same way.
We need a mutual fund industry with both vision and values; a vision of fiduciary duty and shareholder service, and values rooted in the proven principles of long-term investing and of trusteeship that demands integrity in serving our clients.
On balance, the financial system subtracts value from society
I will create value for society, rather than extract it.
John C. Bogle Quotes about Speculation
Speculation leads you the wrong way. It allows you to put your emotions first, whereas investment gets emotions out of the picture.
I believe – deeply and profoundly – that speculation is a loser’s game.
Ask yourself: Am I an investor, or am I a speculator? An investor is a person who owns business and holds it forever and enjoys the returns that U.S. businesses, and to some extent global businesses, have earned since the beginning of time. Speculation is betting on price. Speculation has no place in the portfolio or the kit of the typical investor.
John C. Bogle Quotes about Duty
We need to reorganize our entire system of retirement plan investing and to develop federal standards of fiduciary duty for pension trustees and fund managers. These require “top down” intervention. But we also need investors to look after their own economic interests, a bottom up approach to our problems that is well within our individual power to undertake.
I believe Washington should be a more active participant focusing on the issue of why corporate shareholders and mutual fund shareholders are not given fair treatment by corporate management and mutual fund management. We need to develop a national standard of fiduciary duty to ensure that these agents, if you will, are adequately representing the principles – pension beneficiaries and mutual fund shareholders – whom they are duty bound to serve.
We need a mutual fund industry with both vision and values; a vision of fiduciary duty and shareholder service, and values rooted in the proven principles of long-term investing and of trusteeship that demands integrity in serving our clients.
John C. Bogle Quotes about Investing
In the long run, investing is not about markets at all. Investing is about enjoying the returns earned by businesses.
Your success in investing will depend in part on your character and guts, and in part on your ability to realize at the height of ebullience and the depth of despair alike that this too shall pass.
