Portfolio review please

Thrugelmir

aroominyork wrote: »

I’ve read about it but don’t have the reference to hand. The active Vanguard funds ran counter to everything Bogle believed. He saw active fund management as an industry created to make profit for Wall Street by buying/selling shares and charging fund management high fees. Bogle changed investing by popularising low cost index funds which put investors’ interests first. The two approaches could not be much more dissimilar.

Wall Street is purely the US markets. Not global ones. There's over 3,500 indexes worldwide. Trackers aren't suitable vehicles for all of them.

aroominyork

Thrugelmir wrote: »

Wall Street is purely the US markets. Not global ones. There's over 3,500 indexes worldwide. Trackers aren't suitable vehicles for all of them.

Yes, agreed, but Vanguard was set up with US investors in mind and, I am pretty sure, with an overwhelming focus on the S&P500. When bostomerimus rouses he might have something to add.

Thrugelmir

aroominyork wrote: »

Yes, agreed, but Vanguard was set up with US investors in mind and, I am pretty sure, with an overwhelming focus on the S&P500. When bostomerimus rouses he might have something to add.

We can all agree that the top US companies are the most highly researched in the world. That there's no disputing.

bostonerimus

aroominyork wrote: »

Yes, agreed, but Vanguard was set up with US investors in mind and, I am pretty sure, with an overwhelming focus on the S&P500. When bostomerimus rouses he might have something to add.

Just wiping the sleep from my eyes.

It's not surprising that Vanguard has a US focus, but they've had international indexes for a long time too. In the US Vanguard offers far more active and passive funds than in the UK and I can buy international small cap, emerging market. Pacific Rim etc if I want. Still Bogle's first "index fund" was S&P500 based and he opened it at Wellington management, The active Vanguard Wellington and Wellesley funds are still managed by Wellington. It's true that he personally used index funds and I think that gives a good indication about how dubious his experiences in management had made him of active funds.
But he also had most of his money in bond funds and that would probably have been different today, so as things have changed so much in the last decade who's to say that he would have totally avoided active funds today.

Vanguards international offerings have increased as capitalization outside the US has increased and it should be pointed out that "Wall Street" is not just the US markets...that's like saying "The City" is just the UK market.

Hers is Bogle talking about how it all started...I think he looks like Davros from Dr. Who

https://www.investopedia.com/articles/financial-advisors/012716/where-does-john-c-bogle-keep-his-money.asp

Thrugelmir

bostonerimus wrote: »

it should be pointed out that "Wall Street" is not just the US markets...that's like saying "The City" is just the UK market.

Comment Was made in the context of following a particular market or individual company from thousands of miles away. Vanguard has offices around the Globe.

As a business they'll market whatever investors wish to buy. After all that's how they make their profits. Vanguard is not a charity. I'm sure the owners are well remunerated.

IanManc

Thrugelmir wrote: »

Vanguard is not a charity. I'm sure the owners are well remunerated.

It is a mutual, owned by its customers.

aroominyork

bostonerimus wrote: »

But he also had most of his money in bond funds and that would probably have been different today, so as things have changed so much in the last decade who's to say that he would have totally avoided active funds today.

This was in his very late days and he still is anti-active management.

He was amazing - such a strong voice and the pain from his (presumably arthritis) fingers must have been dreadful. I just watched a Charlie Munger interview - these men are a breed apart.

Thrugelmir

IanManc wrote: »

It is a mutual, owned by its customers.

A public company is owned by it's shareholders. Powers of influence are somewhat limited though.

IanManc

Thrugelmir wrote: »

Vanguard is not a charity. I'm sure the owners are well remunerated.

IanManc wrote: »

It is a mutual, owned by its customers.

Thrugelmir wrote: »

A public company is owned by it's shareholders. Powers of influence are somewhat limited though.

You were pontificating about remuneration and ownership, not influence.

Thrugelmir

IanManc wrote: »

You were pontificating about remuneration and ownership, not influence.

Do the owners of Vanguard have any say in it's running? As a shareholder I can vote against Directors remuneration at the AGM. .