|Expense Ratio (net)||0.14%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Average|
|Beta (3Y Monthly)||1.00|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Aug 31, 1976|
We take a numerical look through the life and work of Vanguard founder Jack Bogle. Plus, our most popular articles and videos for the week ended Jan. 18.
A chance discovery in 1949 led the Vanguard Group founder to champion shareholders as his life’s purpose.
Vanguard founder John C. Bogle died Jan. 16 at age 89. But "Saint Jack," who built the index fund from virtually nothing into a $5 trillion empire and was a boon to individual investors, had already cheated death several times before.
John Bogle, who died yesterday aged 89, made himself the Caesar of our markets through his Vanguard index funds, which seek to track the market at the lowest possible cost to investors. Let the eulogy begin: Friends, Americans, investors. I come to bury Bogle, not to praise him. The evil that men do lives after them; the good is oft interred with their bones; so let it be with Bogle. Jack Bogle created the index fund, teaching that most people aren't going to beat the market, and that if a fund merely reflects that market, ordinary investors can enjoy its fruits at very low cost. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In this, he was right … as right as right can be. If you put just $100 into the Vanguard 500 Index Fund (NYSEARCA:VFINX) when it was launched in 1976, about the time I graduated from college, you would have $733,400. If you just put $100 away every year, in that single fund, you'd be rich. ### The Zombie Market But even Bogle knew you can have too much of a good thing. Index funds are passive owners of stocks, taking the bad with the good, believing everything will even out. Just last year Bogle warned, however, that passive funds could create problems for investors and the national interest specifically because of this passivity. Vanguard, Blackrock and State Street, the largest index fund sponsors, control 81% of all index funds, and index funds in turn own 17.2% of all U.S.-listed securities. * Top 10 Global Stock Ideas for 2019 From RBC Capital Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) vice chairman Charlie Munger explained it this way in 2015. Index funds are permanent owners who never sell, he said, and usually vote management's interests. Vanguard's decisions in 2013 to vote against re-electing directors at Hewlett-Packard and Occidental Petroleum (NYSE:OXY) were notable for being unusual. They were not part of a trend. When index funds own the market, figuring that good and bad management will even out, you create a zombie market, one that can no longer punish bad actions or control runaway boards. Corporate democracy is already under threat from two-tier ownership structures like those of Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Under Armour (NYSE:UAA), which guarantee the founders and their heirs control of the company through unequal voting weight, even if they sell out a majority stake, die or run off to some Caribbean island. Index funds transform corporations from quasi-democracies into kingdoms. ### What Hope Do We Have? Bogle remains right. Most investors don't have both the time and inclination to follow the stock market the way reporters or financial analysts do. For most investors, getting money into the market regularly, and at the lowest possible cost, is the right strategy. The responsibility of index fund managers in overseeing corporate governance has thus become a subject of wide-ranging debate among market insiders. Vanguard will usually vote to re-elect directors if most are outsiders, but just how "outside" are "outside directors?" We usually don't find out until there's a scandal, and their faces are thrown up on TV like a criminal line-up. If funds spend time and money policing boards, they're no longer passive, and their fees must rise. If they don't, corporate malfeasance runs rampant. ### The Bottom Line The story of my life is that regular investing is the way to wealth, just as Bogle says. But that doesn't mean investors should be as passive as the managers of their funds. My view is that once you have a nest egg you should be aggressive, placing bets on the leading edge of technology, which today means cloud applications and biotech. As you age, you should pull back, choosing big stocks that can afford dividends and bonds for income. Jack Bogle's great achievement was to overturn the conventional wisdom of his day, but his legacy was to create a new conventional wisdom, and as he said so often, "conventional wisdom is usually wrong." Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in VTI, the Vanguard Total Stock Market fund, and VWIGX, the Vanguard International Growth Fund. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post It's Time to Listen to John Bogle appeared first on InvestorPlace.
John Bogle, founder of the Vanguard Group, believed that the compounding power of dividends is amazing and is key to the huge wealth creation done by index funds.
John C. Bogle, the father of the retail index fund and an outspoken champion for low-cost investing that won him heroic status among individual investors, died Wednesday. He was 89.
There was nothing passive about the father of passive index investing. Admirers called John C. "Jack" Bogle bold, visionary, principled, scrupulous, industrious, meticulous, magnanimous, inexhaustible, unyielding, thrifty, faithful, and relentlessly optimistic. All agreed, however, that the founder of Vanguard and creator of the first retail index mutual fund was a man of irreproachable integrity and inexhaustible energy who profoundly changed the mutual fund industry and investing for the better.
This was in keeping with the belief that retail mutual fund investors were the "dumb" money and they could be counted on to behave like lemmings. It appears that fund investors have become less inclined to chase performance in the two decades since, as strong returns within a given category no longer mean retail money will follow. For example, among U.S. equity funds (including both open-end and exchange-traded funds), the large-growth Morningstar Category has by far the best returns over the past five years through late November 2018, with a 10.6% average annualized return.
Last month marked my 40th anniversary as a business reporter. Obviously, I was in this profession for the long-term. I mention this because, if my editor at the Houston Business Journal had asked me for a list of the best stocks to own forever in 1978, it would have been heavy on oils, industrials and consumer staples, names like British Petroleum, General Electric and Campbell’s Soup. I might have added a strong local bank there, like Texas Commerce.
Qualcomm Inc. ( QCOM) is an American multinational semiconductor and telecommunications equipment company based in San Diego, California. In October 2016, Qualcomm made a move to expand overseas by announcing a bid for the Dutch semiconductor company NXP Semiconductors S.V. ( NXPI). Qualcomm reported Q4 2018 earnings on November 7, 2018. The telecommunications giant reported $5.8 billion in revenues this quarter, compared to $5.96 billion over the same period last year.
In 2016, General Motors Company (NYSE: GM) was the third-largest automaker in the world, behind Volkswagen AG (VWAGY) and Toyota Motor Corp. (NYSE: TM). GM famously held the top spot in global auto sales for 77 consecutive years from 1931 to 2007.
If you ask Warren Buffett about what stocks to own, he’ll tell you you are better off looking for low-cost index funds to buy like the Vanguard S&P 500 ETF (NYSEARCA:VOO) or the mutual fund version, the Vanguard 500 Index Fund (MUTF:VFINX).
Vanguard index funds have long been at the forefront of passive investing and are favorites among the buy-and-hold community for building long-term portfolios.
Facebook, Inc. (NASDAQ: FB) has established itself as the leading social media giant with a market capitalization of $418.18 billion as of October 29, 2018. When Facebook issued its initial public offering (IPO) on May 18, 2012, many mutual funds had already snapped up shares on the private market. Thereafter, these funds spread their shares of Facebook across many funds. Although Facebook's stock price has gone on a roller coaster ride, those funds that held on to shares benefited from its high growth rate.
As of 2018, approximately 73% of Pfizer's 5.9 billion outstanding shares are owned by mutual funds and institutional investors. Pfizer is a leading pharmaceuticals company in the healthcare industry.
International Business Machines Corporation (NYSE: IBM) began in 1911, from the merger of three manufacturing businesses by financier Charles Flint. At the time, the company was named The Computing-Tabulating-Recording Company and had $800,000 in net income. With the exception of the tabulating machines, business was stagnant until Thomas Watson Sr. came on board as the company's first CEO in 1914.
Founded in 1994 as an online bookstore, Amazon.com Inc. (NASDAQ: AMZN) has become the largest Internet-based retailer in the world. The company has also branched out into cloud computing, electronics, and content distribution, and it has begun testing drone delivery in certain areas.