You guys are still ticking Jack Bogle
The founder of Vanguard
took aim at the finance industry's ethics and fee structures, again
while addressing a crowd of roughly 600 people at the Bryn Mawr Presbyterian Church near his home on Philadelphia's Main Line earlier this week.
Elizabeth MacBride reports
that Saint Jack took on the subjects of Flash Boys
, ETFs, JP Morgan's Jamie Dimon
, and investment professionals.
Oh boy, did he take on investment professionals such as advisors.
MacBride quotes Bogle saying the following on the subject:
Each year, these advisors ... are paid staggering sums of money—perhaps $300 billion or more—for their presumed ability to add value for their investors. But in the stock market, the average money manager earns, yes, average returns before all of their costs. What else is new? But after their advisory fees, trading commissions, tax inefficiency and all their marketing expenses and operating costs, the 'zero-sum game' they play becomes a 'loser's game'—a game that, in the aggregate, inevitably subtracts value from their clients' wealth. There is no mathematical way around that.
And Saint Jack isn't sitting still this time. Like a preacher for the consumer financier, like a Spartacus against Wall Street, he urged the common investor to get loud.
If you own mutual funds, get out your pen and paper and write to their CEOs and their independent directors, demanding that they step up to the plate on corporate governance issues.
You heard the man.
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