[email protected] D uringthe ance between these two cultures, to the detri ment of the .. The general clash ofthe cultures in finance is well Annoal_ReporrIpdf'PHPSESSID ~ e91dbdSOaOb61 d The Clash of the Cultures: Investment vs. Speculation and millions of other books are available for site site. The Clash of the Cultures: Investment vs. Speculation Hardcover – August 7, How speculation has come to dominate investment—a hard-hitting look from the. Recommended Reading by Warren Buffet in his March Letterto Shareholders How speculation has come to dominate investment--ahard-hitting look from.
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Over the course of his sixty-year career in the mutual fund industry, Vanguard Group founder John C. Bogle has witnessed a massive shift in the culture of the. The Clash of the Cultures: Investment vs. Speculation. Home · The Clash of the Cultures: Investment vs. Speculation Author: John C. Bogle | Arthur Levitt Jr. Recommended Reading by Warren Buffet in his March Letter to ShareholdersHow speculation has come to dominate investment--a hard-hitting look from.
If Bogle had his way, institutional investors would use their voting power to push for essential corporate reforms.
Another major focus of The Clash of the Cultures is captured by its subtitle, Investment vs. He sees a place for speculation in a healthy capital market but argues that the balance has shifted too far away from investment. For example, he contends that the exchange-traded fund ETF is a sound concept but thinks the financial industry has gone overboard by offering variants that dangle the lure of a quick buck.
Some of these innovations have turned out to have severe design flaws. For instance, one ETF designed to triple the return of its associated index worked well enough on a daily basis but not over longer periods. Bogle has been diligent in his research, leaving only minor imperfections in the finished text.
He dutifully credits the originators of the aphorisms he sprinkles throughout the book, yet in one case he neglects to identify Hillel as the source. What do you do? Bogle brings invaluable historical perspective to current issues ranging from high-frequency trading to the looming crisis in the U.
During his university years, Bogle studied the mutual fund industry. Bogle spent his junior and senior years working on his thesis "The Economic Role of the Investment Company". Morgan , reportedly as a result of Morgan reading his page thesis paper.
He was hired at Wellington Fund and promoted to an assistant manager position in , where he obtained a broader access to analyze the company and the investment department. Bogle demonstrated initiative and creativity by challenging the Wellington management to change its strategy of concentration on a single fund, and did his best to make his point in creating a new fund.
Fler böcker av Bogle John C Bogle
Eventually he succeeded, and the new fund became a turning point in his career. After successfully climbing through the ranks, in he replaced Morgan as chairman of Wellington,[ citation needed ] but was later fired for an "extremely unwise" merger that he approved.
It was a poor decision that he considers his biggest mistake, stating, "The great thing about that mistake, which was shameful and inexcusable and a reflection of immaturity and confidence beyond what the facts justified, was that I learned a lot. In , Fortune magazine named Bogle as "one of the four investment giants of the twentieth century".
In a speech, Samuelson ranked "this Bogle invention along with the invention of the wheel, the alphabet, Gutenberg printing". Brennan , his handpicked successor and second-in-command whom he had hired in Bogle had a successful heart transplant in His subsequent return to Vanguard with the title of senior chairman led to conflict between Bogle and Brennan.
Bogle left the company in and moved to Bogle Financial Markets Research Center, a small research institute not directly connected to Vanguard but on the Vanguard campus.
Bogle's idea was that instead of beating the index and charging high costs, the index fund would mimic the index performance over the long run—thus achieving higher returns with lower costs than the costs associated with actively managed funds. The main difference between investment and speculation lies in the time horizon.Here, he presents a common sense strategy that 'may not be the best strategy ever devised.
He sees a place for speculation in a healthy capital market but argues that the balance has shifted too far away from investment.
Today, however, he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. First, he backs up and restates the original purpose of the market: "providing fresh capital to business," and thereby enabling the most promising companies to build factories, hire people, and manufacture products.
The prudent, value-adding culture of long-term investment has been crowded out by an aggressive, value-destroying culture of short-term speculation. Then I wondered whether, even if a short-term focus is bad for the economy and for society in general, I ought to take that route, given that everybody else seems to have done so.
Somos a maior rede social do Brasil criada especialmente para quem ama ler. He dutifully credits the originators of the aphorisms he sprinkles throughout the book, yet in one case he neglects to identify Hillel as the source.