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John Bogle on Investing: The First 50 Years

by John C. Bogle

April 2015

Beginner

512 pages

13h 3m

English

Wiley

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Has The First 50 Years Become a Classic?A Retrospective on The First 50 YearsReviewing Five Key ChaptersReflections on What Makes a “Classic”Coming Full Circle
Three Surprising TurnaroundsGreat Ideas in FinanceHow the Book Is OrganizedTwo Careers

1. The Bagel and the Doughnut in the Stock Market2. The Bagel and the Doughnut in the Mutual Fund Industry3. Vanguard in the New Millennium: The Bagel in a Doughnut-Dominated Industry
Successful Fund Managers FailNewsletters Do Even Worse“All the News That's Fit to Print”“Manager of the Year”Bernie Cornfeld's SuccessorsLife Is Short. Enjoy! But Only Up to 5%Now … to the Serious Money AccountSimplicity WorksThe Reward DimensionThe Risk DimensionThe Cost Dimension
Economics and EmotionsA Needle in a HaystackCan an Expert Find the Needle?Why So Many Losing Needles? Costs!Invest in the HaystackFollow the MoneyWhat's To Be Done?Owning the Haystack TodayBogle and Buffett Agree … But to What Avail?
Four Key Elements of Investing: Reward, Risk, Time, and CostReward: Out of Our ControlRisk in Today's MarketOld Economy, New Economy?The Ultimate Test: Future Cash FlowsThe Buffett AnalysisControlling RiskThe “Efficient Frontier”Did He Say “Gold”? or “Alternative Investments”?A Final Thought
The Great Crash and Its AftermathStock Values vs. Stock PricesThe Hazards of Equity InvestingInvesting in BondsThe Appropriate BalanceReturn, Risk—and CostThe Soaring Costs of Mutual FundsIndex Funds … and OthersBeware of Some FundsSumming Up
Myth One: The S&P 500 as the BenchmarkMyth Two: The Past Is Not PrologueMyth Three: Market Timing Will Carry the DayMyth Four: That Indexing Works Only in Efficient MarketsMyth Five: That Reversion to the Mean Will Finally TriumphConclusion
A Better Standard?Too Many Index Funds?The Newest FadActive Managers and IndexesA Retrospective
Why Is It So Difficult to Pick “the” Winners?A More Sophisticated Real-World Test of Fund SelectionA Simple Strategy for Picking “a” WinnerApplying Analysis and Judgment to Identify Future WinnersImplications for the Decade of the 1990sConclusion
Why Own Bond Funds?Five General Rules for Bond Fund SelectionFive Warnings about Bond Fund SelectionConclusion
The Biggest Star: The Bull MarketThree More Stars: Taxes, Technology, and InnovationThe Dark Side of the Bull MarketThe Dark Side of Taxes, Technology, and InnovationWhere Do We Go from Here?
The Leopard Changes Its SpotsThe Flaw of Past PerformanceThe Flaw of High Fund Costs“Follow the Money”The Flaw of Future ReturnsThe Flaw of Great SuccessThe Industry Responds … Sort of … on Fund PerformanceThe Industry Response on CostsThe Industry Response on Price CompetitionIs There “Vigorous Price Competition”?Solutions: Unclear“Show Me the Money”
Index Funds and Managed FundsThe Powerful Relationship between Costs and ReturnsVanguard vs. the CompetitionIt's More Than the Expense RatioRevolutionary WordsFour Generations—Two Authors—One IdeaCommon Sense on Mutual FundsThe Competitive Edge
Enhancing Corporate ValueTime Horizons and the Sources of Investment ReturnThe Consequences of Using Market Returns as the StandardThe Rise of the Institutional InvestorThe Changing Focus of Institutional Voting ActivismThe Silence of the Mutual FundsMutual Funds: The Artillery or the Target?The Inevitable Failure to Earn the Cost of CapitalHow Effective Are Fund Directors?
Why Are Mutual Funds Passive Participants in Corporate Governance?The Effects of PassivityManaged EarningsShort-Term or Long-Term?Reversing Course I. Index FundsReversing Course II. The Ticking Time Bomb of Executive CompensationReversing Course III. Taking Action
Fortune and PrincetonIn the Business and OutThe Character of VanguardThe First Index FundThe First Multi-Series Bond FundEducation and Economics
1. The Mandate2. The Concept3. The Timetable4. The Challenges5. The Opportunities6. Implications for the IndustryThe Winds of Change
Looking Back and Then AheadThe Challenge of Professional ResponsibilityThe Challenge of Fiduciary DutyFund Industry Structure“A Man Cannot Serve Two Masters”Mutualization?The Challenges Ahead
Wilson and EconomicsLiberal or Conservative?The Economics and Idealism Behind Vanguard's FoundingDown with Costs, and Carthage TooA Lengthened Shadow?
The Fund Industry and VanguardTurning Back the ClockRemarkable RelevanceBuilding a Model InstitutionLinking Foresight and CaringThe Superior Company and the Liberating VisionPowerful Parallel PhrasesMemo on Growing from Small to LargeWhere History Comes In
Princeton's Vital RoleA Remarkable AccidentWalter L. Morgan, Fellow PrincetonianThe Foxes—Truly a SkulkWhen Mr. Market Speaks, Funds ListenEnter the HedgehogStatus Quo versus RealityInvestment versus SpeculationThe Hedgehog as BusinessmanReinforcement … from a Surprising SourceLiberal Education, Moral EducationReturning Full CircleWoodrow Wilson on the Moral Impulse
Telltale Heart #1The Nicholas EffectTelltale Heart #2Still on Watch“You Have a New Heart”Continuing My Mutual Fund MissionGratitude to the DonorsA Sense of Hope for the World
Corporate AmericaThe Vanguard SagaA “Hot Tip” on StocksAdvice to the MBA Graduate

Content preview from John Bogle on Investing: The First 50 Years

About the Author

John C. Bogle is the founder and former chief executive of The Vanguard Group, the world's largest no-load mutual fund company, with more than $500 billion in assets owned by 12 million shareholders. In 1999, Fortune named Mr. Bogle one of the four financial giants of the 20^th century, and Princeton University, his alma mater, awarded him its coveted Woodrow Wilson Award. His first book, Bogle on Mutual Funds, has sold over a quarter-million copies in hardcover and paperback.

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Publisher Resources

ISBN: 9781119109587Purchase book