John Bogle, Founder and Former CEO of The Vanguard Group, Talks about the Future of Investing on the CEO Show with Robert Reiss
John Bogle, founder and former CEO of The Vanguard Group, doesn’t beat around the bush regarding the health of the investment market in his interview with Robert Reiss, host of the CEO Show. Bogle also provides his views about how investing has deteriorated from a focus on the long term to short term speculation and provides advice to investors. Other topics discussed include derivatives, health care costs, and the promise of students who are graduating from our educational institutions.
Ridgefield, CT, February 19, 2011 --(PR.com)-- John Bogle, founder and former CEO of The Vanguard Group, a client-owned, investment management company offering over 100 mutual funds and more than $1.5 trillion in assets, doesn’t beat around the bush regarding the health of the investment market in his interview with Robert Reiss, host of the CEO Show. Bogle provides his views about how investing has deteriorated from a focus on the long term to short term speculation where the odds are “a loser’s game as Las Vegas is, as a state lottery is, as the race track is.” The character of the current approach to investing is “ … all motion -- sound and fury, signifying nothing …” of real value.
In the dialog with Reiss, Bogle suggests that investors need to consider the costs of investing: The cost of the investment management, the administrative costs, the transaction costs, and the “sales loads” that are present in 2/3 of funds. Bogle goes on to explain how the expectation of investment performance is further impacted by other negative factors such as taxes, inflation, and the “time value of money”. This means that nominal returns that appear to be 9 percent, in truth can become 2 percent or less. The interview is in fact a very concise course on the wisdom of investing, drawn in part from Bogle’s most recent book, “Don’t Count On It”.
Next the discussion becomes a bit more sophisticated as Bogle starts discussing the nature of ‘derivatives’ and how the stock market is “just one other derivative security”. He points out carefully that “A stock is something that derives its value from the value of the corporation”. Bogle then remarks that “We, the investors, are spending all of our time thinking about the stock market and very little of our time thinking about the returns generated by our corporations. It’s apparent that he must not think that this is the right way to invest.
Bogle and Reiss also discuss other timely issues that include the Nation’s problem of health care costs, the size of the derivatives market, and the strength and hope of America -- its young men and women who are graduating or will soon graduate from schools and universities.
Information about The Vanguard Group can be obtained at: www.vanguard.com
The interview with John Bogle can be previewed on the CEO Show website at:
www.ceoshow.com
Contact: Robert Reiss 203 894 9400, robert@ceoshow.com
The CEO Show with Robert Reiss, syndicated by Business TalkRadio Network, is available in over 40 markets across the USA. Transcripts of interviews are used for Reiss's monthly column with Forbes.com. ( See ‘theceoshowonline.com’ for more information.)
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In the dialog with Reiss, Bogle suggests that investors need to consider the costs of investing: The cost of the investment management, the administrative costs, the transaction costs, and the “sales loads” that are present in 2/3 of funds. Bogle goes on to explain how the expectation of investment performance is further impacted by other negative factors such as taxes, inflation, and the “time value of money”. This means that nominal returns that appear to be 9 percent, in truth can become 2 percent or less. The interview is in fact a very concise course on the wisdom of investing, drawn in part from Bogle’s most recent book, “Don’t Count On It”.
Next the discussion becomes a bit more sophisticated as Bogle starts discussing the nature of ‘derivatives’ and how the stock market is “just one other derivative security”. He points out carefully that “A stock is something that derives its value from the value of the corporation”. Bogle then remarks that “We, the investors, are spending all of our time thinking about the stock market and very little of our time thinking about the returns generated by our corporations. It’s apparent that he must not think that this is the right way to invest.
Bogle and Reiss also discuss other timely issues that include the Nation’s problem of health care costs, the size of the derivatives market, and the strength and hope of America -- its young men and women who are graduating or will soon graduate from schools and universities.
Information about The Vanguard Group can be obtained at: www.vanguard.com
The interview with John Bogle can be previewed on the CEO Show website at:
www.ceoshow.com
Contact: Robert Reiss 203 894 9400, robert@ceoshow.com
The CEO Show with Robert Reiss, syndicated by Business TalkRadio Network, is available in over 40 markets across the USA. Transcripts of interviews are used for Reiss's monthly column with Forbes.com. ( See ‘theceoshowonline.com’ for more information.)
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Robert Reiss
203-894-8655
www.ceoshow.com
Cell phone: 203-894-9400
Robert Reiss
203-894-8655
www.ceoshow.com
Cell phone: 203-894-9400
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