Zweig on the Impact of Index Funds

Last month marked the fortieth birthday of the first index fund (launched by John Bogle, founder of the Vanguard Group) and the anniversary has triggered a lot of discussion and reflection on the trajectory this class of funds has traveled since. Jason Zweig of the Wall Street Journal shares some thoughts on the subject and […]

Jack Bogle on the Future of Index Investing

When Jack Bogle created the first index mutual fund for individual investors (Vanguard 500) forty years ago, he probably didn’t imagine that it would grow to 20 million investor-clients and more than $3 trillion. In last week’s Wall Street Journal, columnist Holman Jenkins, Jr. shares some of Bogle’s insights and opinions as he marks his […]

Jack Bogle’s Advice for the Individual Investor

The AAII Journal published an interview with Vanguard founder John “Jack” Bogle, to whom AAII gave its Cloonan Award for Excellence in Investment Education in 2015. The interview focuses on advice for the individual investor. Bogle said, “by far the best way to own equities is to own them through either a Standard & Poor’s […]

Bogle’s Straightforward Formula for Estimating Future Stock Price Returns

The Wall Street Journal’s Money Beat column highlights the value of simplicity in investment prediction models. Profiling work by John C. Bogle, founder of Vanguard Group, that draws on historical data, the piece highlights his three-factor formula for determining the “sources of return.” These are: Starting yield (annual dividends divided by stock price) Earnings growth […]

Bogle: Stocks Priced For 6% To 7% Returns

Legendary Vanguard Founder Jack Bogle says not to worry about short-term issues like the recent emerging market turmoil. Over the long haul, it’s the performance of companies that will drive stocks, he says, and he thinks corporate growth is indicating stocks should grow 6% to 7% annually. “In the long-term … all value [is] created […]

Bogle: Don’t Rebalance — If You Can Stand It

Rebalancing the assets in your portfolio back to a target weight is an often-cited common sense tenet of investing. But legendary Vanguard Founder Jack Bogle says you might want to think twice about doing so. Boggle tells Money magazine that “If you can ignore market fluctuations along the way, it’s better not to rebalance, since […]

Simple Advice From An Investing Legend

Vanguard Founder Jack Bogle has some simple advice for investors: Invest — and don’t peek. “Nothing,” Bogle tells Canada’s Globe and Mail when asked what keeps him awake at night. “Just invest, and don’t peek. Don’t open your retirement plan contribution statements every quarter. Put in money regularly, and when you retire 40 or 50 years […]

Favorite Charts from Bogle, Wien, and Others

Business Insider recently asked a number of strategists to discuss their “favorite charts of 2012,” and some of the gurus participating offered some very interesting data.  Byron Wien of Blackstone Partners, for example, provided a chart that showed the pace at which the money supply has expanded vs. the rate at which gross domestic product […]

Bogle Talks Election, Dollar-Cost Averaging

Vanguard Founder Jack Bogle says the Presidential Election will ultimately have little impact on stocks. Bogle tells FOX Business Network that companies’ economic performance over the long run is what really drives stock returns, and “that’s not going to change [on Election night], it’s not going to change tomorrow.” Bogle also talks about why he […]

What Bogle Sees For Stocks & Bonds In The Next Decade

Vanguard Founder Jack Bogle says he expects stocks to earn real returns of about 4.5% per year for the next decade, and bonds to earn virtually no real return. Bogle divides returns into two categories: investment returns, which are determined by the market’s dividend yield and corporate earnings growth, and speculative returns. Today’s dividend yield is around […]

Bogle: Stop Gambling and Invest

In a recent interview, Vanguard founder Jack Bogle said investors should “get out of the casino”, and practice real investing — not speculative trading. “Get out of the casino, own Corporate America and hold it forever,” Bogle, long a proponent of buy-and-hold index funds, said during ‘The Big Interview’ on MoneyLife with Chuck Jaffe, according […]

Bonds Very Unlikely to Beat Stocks over Next Decade, Says Bogle

While bonds have performed very well in recent years, Vanguard Founder Jack Bogle says the odds are very high that stocks will outperform bonds over the next decade. “I think the odds that stocks will give a higher return than bonds over the next decade are probably 85 to 90 percent,” Bogle said on CNBC’s […]

Bogle: China “Sinking”, U.S. Best Developed Market

Vanguard founder Jack Bogle says the U.S. is faring better than the rest of the world, and that China’s economy is “sinking quite a bit” right now. “The fact of the matter is our economy, U.S. GDP, is the best performer in the developed world by a good margin and the rest of the world […]

Bogle: Don’t Overreact to ECB Plan

While investors have turned quite bullish after the European Central Bank said it would initiate a bond-buying program to help stabilize Europe’s financial system, Vanguard founder Jack Bogle says they shouldn’t overreact. “I think the market generally takes these things far too seriously,” Bogle told CNBC. “When the ECB chairman says he will do ‘whatever […]

Bogle: Equities Aren’t Dead

Vanguard founder Jack Bogle says he doesn’t think the “cult of equities” is dead, but has a slightly below-average outlook for stocks. “If the culture of equities is dead, it’s much more likely to indicate a great buying opportunity more than anything else,” Bogle tells CNBC in reference to Bill Gross’s claim about the “cult […]

Bogle: Stand Pat Amid Downgrades

Vanguard founder Jack Bogle says that investors shouldn’t overreact to the news about Moody’s downgrading 15 banks and financial firms, and says Thursday’s big down day for the market was a great day for buyers and a bad day for sellers. Bogle tells CNBC that most investors should stand pat and stick to their long-term […]

Bogle: Think Long Term — Very Long Term

Legendary Vanguard founder Jack Bogle says he’s cautious heading into 2012, and that investors need to take a long-term perspective. “With the economy, I’m cautious,” Bogle recently told the Associated Press (a tip of the cap to NPR for highlighting the interview). “I don’t expect a boom in consumer spending over the next two or […]

Bogle: Stay Disciplined — And Don’t Bother With Gold

Vanguard founder Jack Bogle says he thinks stocks will outperform gold over the next decade. “I think so for a simple reason, and that is stocks have an internal rate of return,” Bogle tells Fox Business Network. He says that rate of return is about 7.5% — about 2.5% from dividend yield and 5% from […]