John Bogle’s Recent San Francisco Talk

Kathleen Pender:

Bogle believes investors should simply buy the lowest-cost index funds available and hold them forever. His rule of thumb is to take your age minus 10 and hold that percentage of your assets in a total bond market index fund and the rest in a total stock market index fund. For example, a 30-year old would put 20 percent in bonds and 80 percent in stocks.


This strategy nearly eliminates “the two greatest enemies of equity investing — expenses and emotions,” Bogle said.


Bogle’s attitudes have barely changed since he started the first index fund in August 1976.


That fund, now called Vanguard Index 500, has about $112 billion in retail assets and is the second-largest fund after American Funds’ Growth Fund of America, according to Morningstar.

Bogle wrote the excellent “Battle for the Soul of Capitalism“.