Interview With Vanguard Founder John Bogle

In the wake of the collapse of companies like AIG (NYSE: AIG  ) , Fannie Mae (NYSE: FNM  ) , Freddie Mac (NYSE: FRE  ) , and Merrill Lynch (NYSE: MER  ) , and with unemployment rising and the markets dropping, are we on the verge of another Great Depression? Should long-term investors still be bullish on the stock market or is Berkshire Hathaway Chairman Warren Buffett's optimism misplaced? What should investors expect over the next decade?

In this 19-minute audio interview, Motley Fool retirement expert Robert Brokamp puts these questions to Vanguard founder Jack Bogle, author of Enough: True Measures of Money, Business, and Life. For the text version of this interview, click here.

(Please note: This interview is not downloadable.)

 

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Robert Brokamp is the advisor for the Fool's Rule Your Retirement service. Give it a 30-day free trial by clicking here. Robert owns shares of Berkshire Hathaway, which is a Motley Fool Inside Value and Motley Fool Stock Advisor recommendation. The Fool also owns shares of Berkshire. The Motley Fool is investors writing for investors.


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  • Report this Comment On December 21, 2008, at 10:23 PM, pgoel6uc wrote:

    nice interview. Thank you!

  • Report this Comment On December 22, 2008, at 10:06 AM, LooseWithCramer wrote:

    Bogle needs to rethink his position for the following reasons.

    1. An index fund is like betting on a horse who is slated to finish in the middle of the race and has lost the jockey. They don't identify winning sectors and are unmanged accounts not geared to total returns.That is why you hire a manager. Of course they out perform thier benchmark, that's like saying I passed a class with a "C".

    2. When investors buy stock in mutual funds they relinquish thier input to managment and do not participate in board decisions. If you don't like the companies management you have no power to change it.

    3. If you want to run your own soft hedge fund and employ leverage you need to buy Zero Cupon bonds( not now wait until yields move up) and sector funds , my REIT funds, over the last 20 years thay have provided my best returns- I sold them in Feb 07.

    4. The stock market is after all a Ponzi scheme, Markets move up with volume increases, and if we were really betting on inflation to increase share price we would not allow markets to be shorted. Short selling should not be allowed.

  • Report this Comment On December 30, 2008, at 9:19 PM, JET9EX wrote:

    The country and the stock market are seeing the results of immoral folks running our companies to the ground. The boards of directors of most public companies are nothing more than a collection of money hungry folks with little to no interest in the company other than their free corporate jet ride’s and their paycheck for doing next to nothing. How does a company like GM find itself in such a position? The Board of Director’s are supposed to keep a firm grip on the morals and direction of a company to ensure value for the shareholders (owners). The CEO’s of most of these companies such as GM, AIG etc… have failed the company, employees and most important the owners!

    There is not much incentive to run a company with moral’s, the attorney’s have written a contract for the CEO that all but guarantee positive cash flow to them no matter what! So why work hard when you don’t have to?

    The investors are in-line waiting to invest in a corporation with a moral team in position….

    I vote for Mr. Bogle to run GM!

  • Report this Comment On April 05, 2011, at 9:32 AM, AnthonyDuBon wrote:

    I appreciate the takeaways I got from the Bogle interview:

    • We have had extreme even unprecedented events happen over the last month and the markets remain strong. Does that make sense?

    • No one seems to be looking at the long run.

    • Some things are looking pretty bad: European finances, the US national debt. There is not the political will in Washington to deal with the entitlement programs driving it.

    He is forecasting 6-8% growth in equity markets. Since he does not believe that investors can beat the market, that 6-8% growth is it. I think LoosewithCramer’s metaphor of a horse race is a good one. Few people bet on the horse they expect to come in 6th of 11 horses, or the average time of all the horses in the race.

    With great respect, we at FundRevealSM disagree with Mr. Bogle and maintain that actively managed mutual funds can outperform the market on a regular basis. (Full disclosure – FundRevealSM is offered by the company I work for) The entire FundRevealSM approach is based on finding the funds that persistently beat the S&P Index. Our analyses show that funds that beat the S&P on both risk and annualized average daily return metrics with a high persistence rating are very likely to outperform in total return in succeeding years. If you invest using the FundRevealSM process, you should be able to make a return greater than the 6-8% that the index investors will obtain. You can try the approach for free at www.fundreveal.com

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