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". Posted by James Zellmer at October 29, 2006 10:03 AM | Subscribe to this site via RSS:
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