One doesn't get to the top of the food chain by blending in and going with the flow.
certainly didn't get Vanguard
] to where it is today by doing what everyone else was doing. Bogle takes a strikingly unique approach in that he runs his firm as a nonprofit to be owned by its funds' shareholders.
Bogle recently spoke on the matter in his speech, "Big Money in Boston: The Commercialization of the 'Mutual' Fund Industry," Morningstar
's John Rekenthaler notes in his latest column
In his speech, Bogle shook his head at fund companies who operate toward a commercial reward, arguing that fund companies can't use their profits in the way that profits are traditionally and effectively used, like by making better hires, buying better equipment, or investing in better research.
Rather, it's more a game of greed. Profits go not into investments generally, but into the pockets of the owners.
Vanguard's model is clearly working, but is the philosophy behind it foolproof? Can all funds benefit from this ostensibly less greedy approach?
For more, see the full story here
You can read Bogle's speech here
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