Inside Vanguard: Leadership Secrets From the Company That Continues to Rewrite the Rules of the Investing Business

CAHPTER 7

ACTIVE INVESTING

Vanguard is committed to encouraging investors to recognize the importance of developing a long-term investment plan and staying with that plan. Vanguard is deliberately conservative about investing and regularly warns investors about paying too much attention to short-run market movements. These tenets are consistent with its dedication to keeping costs low without sacrificing value, quality, or performance.

Seldom does one person, particularly one who is not the founder or the CEO, make the decisive difference in the crucial early decade of a major company, but John Neff certainly did. Without Neff in those difficult early years, Vanguard would not have attracted the favorable attention of savvy investors who moved ...