Wednesday, 26 February 2014

John C. Bogle - The Battle for the Soul of Capitalism

Dean Lawrence R Velvel interviews John C. Bogle, founder of the Vanguard Group, Inc. and president of the Bogle Financial Markets Research Center, about his book The Battle for the Soul of Capitalism. Bogle analyses what went wrong in corporate america, from pension plans to corporate profits to mutual funds to stock options to corporate greed.

2 markets:  Business market and the Expectation market

@ 34.30 min - Owner capitalism is now transformed into a pathological mutant form where the managers have taken far too large a proportion of the share of the profits.  Today financial institutions own 68% of all stocks; they are traders and speculators mainly, playing in the expectation market.

@ 49.30 min - Costs of mutual funds.

@ 53 min - The magic of compounding returns.  The tyranny of compounding costs.  The tyranny of compounding costs overwhelmed the magic of compounding returns.  Get rid of costs and emotions.

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