John Bogle

A recent study from John Bogle indicates that retail investors are making miserable buy and sell decisions with exchanged traded funds (ETF). The study looks at the difference between between an ETF's return and the returns of the average dollar invested in those funds. In other words, the study looks at the difference between the fund's return over a particular time frame and the return to the average investor in the fund who made buy and sell decisions over that same period. The study...

Vanguard founder John Bogle suggests that buy and hold investing is not dead. Similar to Warren Buffett, Bogle's preferred time horizon for equity investments is forever. Bogle urges caution for anyone who is thinking of investing in equity market with a time horizon of less than 10 years--which, by the way, would include almost all people who are approacing or in retirement: If you said "What kind of a time horizon should I have to be in the stock market?" If you are not in the stock market, I...

Speaking at an industry conference this past week, Vanguard founder John Bogle suggested that all money managers should be subject to a federal standard of fiduciary duty. Bogle believes that some money managers have been taking advantage of their positions at the expense of the shareholders whose interests they presumably represent. Bogle also suggested that the mutual fund industry is leaning too heavily on past returns and, as a result, that Monte Carlo simulations should be abandoned...

Speaking at a recent industry conference, Vanguard founder John Bogle indicated that he thinks it is quite possible that it will take until 2020 for stocks to return to their 2007 highs: “Is it possible when we get to 2020 the S&P won’t be much above 1,550? You’re darn right it is,” Bogle, 80, said in an interview at a conference in Chicago organized by research firm Morningstar Inc. Bogle also mentioned that he expects 1 to 2 percent growth in the U.S. economy, and that stocks are more...

John Bogle maintains his firm belief that a buy and hold strategy combined with low cost index funds results in the only reasonable approach for the individual investor: "Of course buy and hold is the thing to do. A genius like Jim Cramer hasn't gone anywhere for 10-14 years and few [managed] mutual funds have beaten the market indices during the same period. It's just market timing, and your good market timing is my bad market timing. [We invest within] a totally illogical system where we move...