Don't Count on It!: Reflections on Investment Illusions, Capitalism, "Mutual" Funds, Indexing, Entrepreneurship, Idealism, and Heroes

3.81 avg rating
( 101 ratings by Goodreads )
 
9780470643969: Don't Count on It!: Reflections on Investment Illusions, Capitalism,
View all copies of this ISBN edition:
 
 


Q&A with Author John C. Bogle

Author John C. Bogle

In Don’t Count on It, you discuss how we deceive ourselves, particularly with numbers. Can you describe what you consider to be the absolute worst illusion investors fall prey to?
The most damaging illusion for investors is their belief that they capture the stock market's return. For example, if the stock market provides an annual return of 7%, we know that the average investor's return will fall short of that by the amount of fees they pay. Those fees amount to about 2.5% annually for the typical investor, so their net return is down to 4.5%. Taxes might knock another 1% off of that, reducing the investor's annual return to 3.5% -- just half of the market's return. If you compound those figures over 50 years, $1 grows by $4.60 at 3.5%, and by $28.50 at 7%. In other words, the investor's cumulative return is less than 20% of the market's return. That's an enormous gap; one that can easily mean the difference between achieving one's long-term financial goals and falling well short of them.

If you could change just one thing about the practice of capitalism today, what would it be, and why is it the most important?
The biggest problem with capitalism today is our tremendous focus on the short-term. Institutional investors--who own 70% of our corporations--are predominantly concerned with whether or not the quarterly earnings of the companies they own will meet the stock market's expectations. As a result, our corporate managers move heaven and earth to try to meet those targets, so as to keep their firm's stock price high and maximize their stock-based compensation. But building corporate value over the long-term is hard; there are no quick or easy shortcuts. And as the past decade has demonstrated, decisions made to boost earnings and stock prices in the short-term tend to end up destroying shareholder value over the long-term. The sooner we can realign our focus from the short-term to the long-term, the better for all concerned.

What do you think about ETFs?
I like some; I am appalled by others. Specifically, I favor low cost ETFs that are focused on broadly diversified portfolios of stocks and bonds that investors can hold for a lifetime. These ETFs should provide investors with their fair share of whatever the returns our financial markets will provide. That's a winner's game.

On the other hand, I'm not happy with ETFs--the vast majority--that exist to enable investors to speculate, to play their hunches on which country or market sector will outperform or underperform over the short term. The turnover rates are enormous, holding periods are measured in mere days, and costs are far higher than those levied by broad market ETFs. That kind of speculation is a loser's game. So I believe that ETFs have the potential to play a significant role in the portfolios of long-term investors. Unfortunately, to this point their use seems to be dominated by those engaged in far more destructive investment approaches.

You talk about inspiring the next generation of leaders and your mentors in Don’t Count on It. What did your mentors have in common that you think is the most important trait in inspiring young people today? In other words, how can each of us be better mentors?
I think at the most basic level, my mentors were good people; men of strong character who loved their work. They realized that the work they did made a difference in people's lives, and they did that work with a great deal of ability, pride, and professionalism. They woke up every day and tried their best to make the world a little bit better. That's what I took away from the relationships I had with my mentors, and the extent that I've been able to emulate them, I think, explains a great deal of what I've been able to accomplish in my own career.

My views on mentoring have a lot in common with the themes of Don't Count on It. That is, these relationships are largely built upon trust, and attempts to quantify them are doomed to failure. Mentoring, in my mind, is less about helping someone fill out a checklist of accomplishments, and much more about passing along the immeasurable qualities one needs to be successful in their field --character, professionalism, honesty, intellectual curiosity, even humor. If you possess sufficient amounts of those characteristics, you're likely to be successful in whatever field you work in.


Praise for Don't Count On It!

"This collection of Jack Bogle's writings couldn't be more timely. The clarity of his thinking—and his insistence on the relevance of ethical standards—are totally relevant as we strive to rebuild a broken financial system. For too many years, his strong voice has been lost amid the cacophony of competing self-interests, misdirected complexity, and unbounded greed. Read, learn, and support Jack's mission to reform the industry that has been his life's work."
PAUL VOLCKER, Chairman of the President's Economic Recovery Advisory Board and former Chairman of the Federal Reserve (1979–1987)

"Jack Bogle has given investors throughout the world more wisdom and plain financial 'horse sense' than any person in the history of markets. This compendium of his best writings, particularly his post-crisis guidance, is absolutely essential reading for investors and those who care about the future of our society."
ARTHUR LEVITT, former Chairman, U.S. Securities and Exchange Commission

"Jack Bogle is one of the most lucid men in finance."
NASSIM N.TALEB, PhD, author of The Black Swan

"Jack Bogle is one of the financial wise men whose experience spans the post–World War II years. This book, encompassing his insights on financial behavior, pitfalls, and remedies, with a special focus on mutual funds, is an essential read. We can only benefit from his observations."
HENRY KAUFMAN, President, Henry Kaufman & Company, Inc.

"It was not an easy sell. The joke at first was that only finance professors invested in Vanguard's original index fund. But what a triumph it has been. And what a focused and passionate drive it took: it is a zero-sum game and only costs are certain. Thank you, Jack."
JEREMY GRANTHAM, Cofounder and Chairman, GMO

"On finance, Jack Bogle thinks unconventionally. So, this sound rebel turns out to be right most of the time. Meanwhile, many of us sometimes engage in self-deception. So, this book will set us straight. And in the last few pages, Jack writes, and I agree, that Peter Bernstein was a giant. So is Jack Bogle."
JEAN-MARIE EVEILLARD, Senior Adviser, First Eagle Investment Management

Insights into investing and leadership from the founder of The Vanguard Group

Throughout his legendary career, John Bogle-founder of the Vanguard mutual fund group and creator of the first index mutual fund-has helped investors build wealth the right way, while, at the same time, leading a tireless campaign to restore common sense to the investment world.

A collection of essays based on speeches delivered to professional groups and college students in recent years, in Don't Count on It is organized around eight themes

  • Illusion versus reality in investing
  • Indexing to market returns
  • Failures of capitalism
  • The flawed structure of the mutual fund industry
  • The spirit of entrepreneurship
  • What is enough in business, and in life
  • Advice to America's future leaders
  • The unforgettable characters who have shaped his career

Widely acclaimed for his role as the conscience of the mutual fund industry and a relentless advocate for individual investors, in Don't Count on It, Bogle continues to inspire, while pushing the mutual fund industry to measure up to their promise.

"synopsis" may belong to another edition of this title.

From the Back Cover:

Praise for Don't Count On It!

"This collection of Jack Bogle's writings couldn't be moretimely. The clarity of his thinking—and his insistence on therelevance of ethical standards—are totally relevant as westrive to rebuild a broken financial system. For too many years,his strong voice has been lost amid the cacophony of competingself-interests, misdirected complexity, and unbounded greed. Read,learn, and support Jack's mission to reform the industry that hasbeen his life's work."
PAUL VOLCKER, Chairman of the President's EconomicRecovery Advisory Board and former Chairman of the Federal Reserve(1979–1987)

"Jack Bogle has given investors throughout the world more wisdomand plain financial 'horse sense' than any person in the history ofmarkets. This compendium of his best writings, particularly hispost-crisis guidance, is absolutely essential reading for investorsand those who care about the future of our society."
ARTHUR LEVITT, former Chairman, U.S. Securities andExchange Commission

"Jack Bogle is one of the most lucid men in finance."
NASSIM N.TALEB, PhD, author of The Black Swan

"Jack Bogle is one of the financial wise men whose experiencespans the post–World War II years. This book, encompassinghis insights on financial behavior, pitfalls, and remedies, with aspecial focus on mutual funds, is an essential read. We can onlybenefit from his observations."
HENRY KAUFMAN, President, Henry Kaufman &Company, Inc.

"It was not an easy sell. The joke at first was that onlyfinance professors invested in Vanguard's original index fund. Butwhat a triumph it has been. And what a focused and passionate driveit took: it is a zero-sum game and only costs are certain. Thankyou, Jack."
JEREMY GRANTHAM, Cofounder and Chairman, GMO

"On finance, Jack Bogle thinks unconventionally. So, this soundrebel turns out to be right most of the time. Meanwhile, many of ussometimes engage in self-deception. So, this book will set usstraight. And in the last few pages, Jack writes, and I agree, thatPeter Bernstein was a giant. So is Jack Bogle."
JEAN-MARIE EVEILLARD, Senior Adviser, First EagleInvestment Management

From the Inside Flap:

In his Foreword, former Federal Reserve vice-chairman Alan S.Blinder writes, "America's vaunted financial system let us downbig-time during the raucous decade of the 2000s." In Don't Count onIt!, John C. Bogle—a man Dr. Blinder refers to as "theconscience of Wall Street"—identifies modern capitalism'sflaws, explains how we arrived at this economic crossroads, andexamines how we can begin to repair the damage before it's toolate.

Don't Count on It! presents an anthology of Bogle's latestthinking, focused on how numbers deceive us into seeing things asother than they really are. He also presents a cogent analysis ofthe chinks in the armor of a financial system that has failed tolive up to the responsibility owed to its individual andinstitutional investors.

Read and learn from the wise counsel of Vanguard's founder abouthow we deceive ourselves into accepting illusory and evanescentnumbers rather than focusing on fundamental and intrinsic reality.Bogle argues that we confuse the market of real investing with themarket of expectations, disregarding the beauty of simplicity infavor of the wizardry that creates complex "products" that serveWall Street at the expense of its clients. Specifically, Boglediscusses:

  • The unconscionably high costs of financial intermediation

  • The disgraceful failure of money managers and agents to abide bywhat should have been traditional fiduciary standards

  • The unfortunate consequences of the dominance of short-termspeculation over long-term investment

The subjects of Bogle's anthology go well beyond the investmentmarkets, as indicated by the seven sections of Don't Count onIt!—Investment Illusions, The Failure of Capitalism, What'sWrong with "Mutual" Funds, What's Right with Indexing,Entrepreneurship and Innovation, Idealism and the New Generation,and Heroes and Mentors.

His book encourages readers to better understand our complexfinancial system, to examine it, to debate it, to challenge it, andto fulfill our duty to ask simple questions and demand answers thatare understandable, intelligent, and, above all, wise.

"About this title" may belong to another edition of this title.

Top Search Results from the AbeBooks Marketplace

1.

John C. Bogle
Published by Wiley (2010)
ISBN 10: 047064396X ISBN 13: 9780470643969
New Hardcover First Edition Quantity Available: 1
Seller:
Carolina Books
(Central, SC, U.S.A.)
Rating
[?]

Book Description Wiley, 2010. Hardcover. Condition: New. 1st Edition. “In Don’t Count on It! Reflections on Investment Illusions, Capitalism, “Mutual” Funds, Indexing, Entrepreneurship, Idealism, and Heroes, Bogle hammers at what he labels the cost matters hypothesis: Whether markets are efficient or inefficient, investors as a group must fall short of the market return by precisely the amount of the aggregate costs they incur. It is the central fact of investing. Not surprisingly, the book deals extensively with the low-cost innovation for which Vanguard is best known: the stock index mutual fund. When the company first made indexing available to small investors in 1975, critics derided the notion as “Bogle’s folly.” To Bogle, however, the benefits to investors were irrefutable. . . The impact of indexing has been so great that a second, hugely important contribution by Vanguard has been overshadowed. Vanguard originated the now standard segmentation of bond funds into short-, intermediate-, and long-term varieties. Bogle was enshrined in the Fixed Income Analysts Society Hall of Fame for this innovation. The author of Don’t Count on It! does not dwell on such honors, which include being named one of the world’s 100 most powerful and influential people by Time magazine. In fact, Bogle devotes the final section of his book to tributes to four of his own heroes: Walter Morgan, economist Paul Samuelson, investment guru Peter Bernstein, and Dr. Bernard Lown, a Nobel laureate whom he credits with keeping him alive in defiance of a mystifying heart ailment. Bogle also shows modesty in sharing credit for his contributions to the field and in downplaying his own theoretical expertise. His unashamed display of such old-fashioned virtues, as well as his heretical view that running a business is not entirely about maximizing the wealth of the owners, has earned him the nickname ‘St. Jack.’”. Seller Inventory # ABE-1519146065576

More information about this seller | Contact this seller

Buy New
US$ 8.99
Convert currency

Add to Basket

Shipping: US$ 3.75
Within U.S.A.
Destination, rates & speeds

2.

John C. Bogle
Published by Wiley (2010)
ISBN 10: 047064396X ISBN 13: 9780470643969
New Hardcover First Edition Quantity Available: 1
Seller:
Carolina Books
(Central, SC, U.S.A.)
Rating
[?]

Book Description Wiley, 2010. Hardcover. Condition: New. Dust Jacket Condition: New. 1st Edition. “In Don’t Count on It! Reflections on Investment Illusions, Capitalism, “Mutual” Funds, Indexing, Entrepreneurship, Idealism, and Heroes, Bogle hammers at what he labels the cost matters hypothesis: Whether markets are efficient or inefficient, investors as a group must fall short of the market return by precisely the amount of the aggregate costs they incur. It is the central fact of investing. Not surprisingly, the book deals extensively with the low-cost innovation for which Vanguard is best known: the stock index mutual fund. When the company first made indexing available to small investors in 1975, critics derided the notion as “Bogle’s folly.” To Bogle, however, the benefits to investors were irrefutable. . . The impact of indexing has been so great that a second, hugely important contribution by Vanguard has been overshadowed. Vanguard originated the now standard segmentation of bond funds into short-, intermediate-, and long-term varieties. Bogle was enshrined in the Fixed Income Analysts Society Hall of Fame for this innovation. The author of Don’t Count on It! does not dwell on such honors, which include being named one of the world’s 100 most powerful and influential people by Time magazine. In fact, Bogle devotes the final section of his book to tributes to four of his own heroes: Walter Morgan, economist Paul Samuelson, investment guru Peter Bernstein, and Dr. Bernard Lown, a Nobel laureate whom he credits with keeping him alive in defiance of a mystifying heart ailment. Bogle also shows modesty in sharing credit for his contributions to the field and in downplaying his own theoretical expertise. His unashamed display of such old-fashioned virtues, as well as his heretical view that running a business is not entirely about maximizing the wealth of the owners, has earned him the nickname ‘St. Jack.’”. Seller Inventory # ABE-1519146101306

More information about this seller | Contact this seller

Buy New
US$ 8.99
Convert currency

Add to Basket

Shipping: US$ 3.75
Within U.S.A.
Destination, rates & speeds

3.

John C. Bogle
Published by Wiley (2010)
ISBN 10: 047064396X ISBN 13: 9780470643969
New Hardcover Quantity Available: 1
Seller:
Irish Booksellers
(Portland, ME, U.S.A.)
Rating
[?]

Book Description Wiley, 2010. Condition: New. book. Seller Inventory # M047064396X

More information about this seller | Contact this seller

Buy New
US$ 20.23
Convert currency

Add to Basket

Shipping: FREE
Within U.S.A.
Destination, rates & speeds

4.

John C. Bogle
Published by John Wiley and Sons
ISBN 10: 047064396X ISBN 13: 9780470643969
New Quantity Available: > 20
Seller:
INDOO
(Avenel, NJ, U.S.A.)
Rating
[?]

Book Description John Wiley and Sons. Condition: New. Brand New. Seller Inventory # 047064396X

More information about this seller | Contact this seller

Buy New
US$ 17.50
Convert currency

Add to Basket

Shipping: US$ 3.60
Within U.S.A.
Destination, rates & speeds

5.

Bogle, John C.
ISBN 10: 047064396X ISBN 13: 9780470643969
New Quantity Available: > 20
Seller:
Paperbackshop-US
(Wood Dale, IL, U.S.A.)
Rating
[?]

Book Description 2010. HRD. Condition: New. New Book. Shipped from US within 10 to 14 business days. Established seller since 2000. Seller Inventory # VW-9780470643969

More information about this seller | Contact this seller

Buy New
US$ 17.65
Convert currency

Add to Basket

Shipping: US$ 3.99
Within U.S.A.
Destination, rates & speeds

6.

John C. Bogle
Published by John Wiley and Sons Ltd, United Kingdom (2010)
ISBN 10: 047064396X ISBN 13: 9780470643969
New Hardcover First Edition Quantity Available: 1
Seller:
Book Depository International
(London, United Kingdom)
Rating
[?]

Book Description John Wiley and Sons Ltd, United Kingdom, 2010. Hardback. Condition: New. 1. Auflage. Language: English . Brand New Book. Praise for Don t Count On It! This collection of Jack Bogle s writings couldn t be more timely. The clarity of his thinking and his insistence on the relevance of ethical standards are totally relevant as we strive to rebuild a broken financial system. For too many years, his strong voice has been lost amid the cacophony of competing self-interests, misdirected complexity, and unbounded greed. Read, learn, and support Jack s mission to reform the industry that has been his life s work. PAUL VOLCKER, Chairman of the President s Economic Recovery Advisory Board and former Chairman of the Federal Reserve (1979 1987) Jack Bogle has given investors throughout the world more wisdom and plain financial horse sense than any person in the history of markets. This compendium of his best writings, particularly his post-crisis guidance, is absolutely essential reading for investors and those who care about the future of our society. ARTHUR LEVITT, former Chairman, U.S. Securities and Exchange Commission Jack Bogle is one of the most lucid men in finance. NASSIM N.TALEB, PhD, author of The Black Swan Jack Bogle is one of the financial wise men whose experience spans the post World War II years. This book, encompassing his insights on financial behavior, pitfalls, and remedies, with a special focus on mutual funds, is an essential read. We can only benefit from his observations. HENRY KAUFMAN, President, Henry Kaufman Company, Inc. It was not an easy sell. The joke at first was that only finance professors invested in Vanguard s original index fund. But what a triumph it has been. And what a focused and passionate drive it took: it is a zero-sum game and only costs are certain. Thank you, Jack. JEREMY GRANTHAM, Cofounder and Chairman, GMO On finance, Jack Bogle thinks unconventionally. So, this sound rebel turns out to be right most of the time. Meanwhile, many of us sometimes engage in self-deception. So, this book will set us straight. And in the last few pages, Jack writes, and I agree, that Peter Bernstein was a giant. So is Jack Bogle. JEAN-MARIE EVEILLARD, Senior Adviser, First Eagle Investment Management Insights into investing and leadership from the founder of The Vanguard Group Throughout his legendary career, John Bogle-founder of the Vanguard mutual fund group and creator of the first index mutual fund-has helped investors build wealth the right way, while, at the same time, leading a tireless campaign to restore common sense to the investment world. A collection of essays based on speeches delivered to professional groups and college students in recent years, in Don t Count on It is organized around eight themes Illusion versus reality in investingIndexing to market returnsFailures of capitalismThe flawed structure of the mutual fund industryThe spirit of entrepreneurshipWhat is enough in business, and in lifeAdvice to America s future leadersThe unforgettable characters who have shaped his career Widely acclaimed for his role as the conscience of the mutual fund industry and a relentless advocate for individual investors, in Don t Count on It, Bogle continues to inspire, while pushing the mutual fund industry to measure up to their promise. Seller Inventory # AAH9780470643969

More information about this seller | Contact this seller

Buy New
US$ 23.52
Convert currency

Add to Basket

Shipping: FREE
From United Kingdom to U.S.A.
Destination, rates & speeds

7.

Bogle, John C.
ISBN 10: 047064396X ISBN 13: 9780470643969
New Quantity Available: 3
Seller:
Pbshop
(Wood Dale, IL, U.S.A.)
Rating
[?]

Book Description 2010. HRD. Condition: New. New Book.Shipped from US within 10 to 14 business days. Established seller since 2000. Seller Inventory # IB-9780470643969

More information about this seller | Contact this seller

Buy New
US$ 19.65
Convert currency

Add to Basket

Shipping: US$ 3.99
Within U.S.A.
Destination, rates & speeds

8.

John C. Bogle
Published by John Wiley and Sons Ltd, United Kingdom (2010)
ISBN 10: 047064396X ISBN 13: 9780470643969
New Hardcover First Edition Quantity Available: 1
Seller:
The Book Depository
(London, United Kingdom)
Rating
[?]

Book Description John Wiley and Sons Ltd, United Kingdom, 2010. Hardback. Condition: New. 1. Auflage. Language: English . Brand New Book. Praise for Don t Count On It! This collection of Jack Bogle s writings couldn t be more timely. The clarity of his thinking and his insistence on the relevance of ethical standards are totally relevant as we strive to rebuild a broken financial system. For too many years, his strong voice has been lost amid the cacophony of competing self-interests, misdirected complexity, and unbounded greed. Read, learn, and support Jack s mission to reform the industry that has been his life s work. PAUL VOLCKER, Chairman of the President s Economic Recovery Advisory Board and former Chairman of the Federal Reserve (1979 1987) Jack Bogle has given investors throughout the world more wisdom and plain financial horse sense than any person in the history of markets. This compendium of his best writings, particularly his post-crisis guidance, is absolutely essential reading for investors and those who care about the future of our society. ARTHUR LEVITT, former Chairman, U.S. Securities and Exchange Commission Jack Bogle is one of the most lucid men in finance. NASSIM N.TALEB, PhD, author of The Black Swan Jack Bogle is one of the financial wise men whose experience spans the post World War II years. This book, encompassing his insights on financial behavior, pitfalls, and remedies, with a special focus on mutual funds, is an essential read. We can only benefit from his observations. HENRY KAUFMAN, President, Henry Kaufman Company, Inc. It was not an easy sell. The joke at first was that only finance professors invested in Vanguard s original index fund. But what a triumph it has been. And what a focused and passionate drive it took: it is a zero-sum game and only costs are certain. Thank you, Jack. JEREMY GRANTHAM, Cofounder and Chairman, GMO On finance, Jack Bogle thinks unconventionally. So, this sound rebel turns out to be right most of the time. Meanwhile, many of us sometimes engage in self-deception. So, this book will set us straight. And in the last few pages, Jack writes, and I agree, that Peter Bernstein was a giant. So is Jack Bogle. JEAN-MARIE EVEILLARD, Senior Adviser, First Eagle Investment Management Insights into investing and leadership from the founder of The Vanguard Group Throughout his legendary career, John Bogle-founder of the Vanguard mutual fund group and creator of the first index mutual fund-has helped investors build wealth the right way, while, at the same time, leading a tireless campaign to restore common sense to the investment world. A collection of essays based on speeches delivered to professional groups and college students in recent years, in Don t Count on It is organized around eight themes Illusion versus reality in investingIndexing to market returnsFailures of capitalismThe flawed structure of the mutual fund industryThe spirit of entrepreneurshipWhat is enough in business, and in lifeAdvice to America s future leadersThe unforgettable characters who have shaped his career Widely acclaimed for his role as the conscience of the mutual fund industry and a relentless advocate for individual investors, in Don t Count on It, Bogle continues to inspire, while pushing the mutual fund industry to measure up to their promise. Seller Inventory # AAH9780470643969

More information about this seller | Contact this seller

Buy New
US$ 23.94
Convert currency

Add to Basket

Shipping: FREE
From United Kingdom to U.S.A.
Destination, rates & speeds

9.

Bogle, John C. & Alan S. Blinder
Published by Wiley (2010)
ISBN 10: 047064396X ISBN 13: 9780470643969
New Hardcover First Edition Quantity Available: 1
Seller:
Frank Sincavage
(PHILA, PA, U.S.A.)
Rating
[?]

Book Description Wiley, 2010. Hardcover. Condition: New. Dust Jacket Condition: New. First Edition; First Printing. Brand new with mylar cover; 8vo 8" - 9" tall; 603 pages. Seller Inventory # 40425

More information about this seller | Contact this seller

Buy New
US$ 25.00
Convert currency

Add to Basket

Shipping: US$ 3.99
Within U.S.A.
Destination, rates & speeds

10.

Bogle, John C.
Published by Wiley
ISBN 10: 047064396X ISBN 13: 9780470643969
New Hardcover Quantity Available: 1
Seller:
Booklot COM LLC
(Philadelphia, PA, U.S.A.)
Rating
[?]

Book Description Wiley. Hardcover. Condition: New. 047064396X. Seller Inventory # Z047064396XZN

More information about this seller | Contact this seller

Buy New
US$ 29.01
Convert currency

Add to Basket

Shipping: FREE
Within U.S.A.
Destination, rates & speeds

There are more copies of this book

View all search results for this book