Jack Bogle Interview - Jan 2017

Can your super alcohol brain remember the approximate dividend yield of the big 4 lics before (HIGHS) and after (LOWS) the GFC?

 

Woohoo, I kn

i only remember exciting things. The boring predictability of dividends from the old LIC majors doesn't fall into that category.

 

Was just re-reading the following Bogle interview which I noticed that @Redwing had also posted earlier in the thread.

It reinforces why as a retiree I love this approach to investing. Note when I refer to dividend investing I'm not meaning rubbish like VHY but broadly diversified product such as cap weighted index ETFs / Funds and the older style LICs. I can't describle how comforting it is to see those dividends reliably deposited into your bank account regardless of what's happening in the market price wise. Sure in the worst of times dividends can be cut but nothing like share price:

Legends Of Indexing: John Bogle | ETF.com

 

Very good question!

 

Perhaps why I don't remember and why I can't be bothered checking is that I really didn't notice much of a change in dividend income. Such is the beauty of the LIC dividend focused mandate and company structure!

Think about it?

One day you'll be retired and understand the importance of such things.

 

Bogle has recently commented on International Stocks in the updated edition of “The Little Book of Common Sense Investing”

The latest good advice from Vanguard’s Jack Bogle

However, Bogle admits that “perhaps the relative advantage achieved in the U.S. stock market over the past quarter-century has now been arbitraged away” and that international stocks may be relative bargains.

“Who really knows? So you will have to consider the probabilities and make your own judgment,” he writes.

 

"Nobody knows nothin!" as Jack has said. The beauty of total market investing is you dont need to make those judgements, tilt to home equities for currency and or tax reasons sure, but a portion of total international market (whichever way you get there) makes sense to me. I think Taylor Larimore who is probably Jack's greatest disciple is totally right

 

Interesting short piece here

Bogle on Vanguard

 

Jack Bogle speaks on the expectations of market returns

link

"Dividends are an investor’s best friend, said John Bogle, founder of the Vanguard Group. The compounding power of dividends is amazing, he said, adding that dividends are the key to the huge wealth creation done by index funds. “In the long run, corporate earnings and dividend yield drive stock prices,” Listen in!

 

Woohoo, go Jack. Now that’s what I’m talkin about. Simple rules of wealth well remembered by the wise old veterans in the industry but often forgotten in today’s world of short termism and focus on “capital” speculation.

 

Scott Pape: The Barefoot Investor’s take on Vanguard Group founder John Bogle and advice to a young widow

Jack Bogle, the founder of both Vanguard and the first- ever index fund (the S&P 500 — you’ve probably heard of it) died a few weeks ago.

Literally the day before his death I put in a request to interview him, hoping to hear his wisdom on what could be done about the embarrassment that is our fee-gouging retirement industry.

Sadly, it wasn’t to be. But he’s a legend and you need to hear his story.

Bogle was a rebel who set up Vanguard in 1975 as a non-profit. Vanguard could have made him one of the richest people on Earth. But it didn’t. Instead, he put investors first, with a focus on lowering fees.

Warren Buffett regarded Bogle as his hero, saying: “If a statue is ever erected to honour the person who has done the most for American investors, the hands-down choice should be Jack Bogle.”

Last year the Vanguard index fund beat about 85 per cent of the 100 large-cap Aussie fund managers. So, faced with this overwhelming evidence, why don’t our Aussie super funds embrace low-cost index investing?

In fact, that’s the exact question I was going to ask Jack. Now, I don’t want put words in his mouth, but my guess is that he’d point to the collective $30 billion a year in fees trousered by our super funds.

Or to quote the man himself: “The miracle of compounding returns is overwhelmed by the tyranny of compounding fees.”

RIP Jack!