Recommended Reading by Warren Buffet in his March 2013 Letter to Shareholders
How hypothesis has come to dominate funding—a hard-hitting look from the creator of the primary index fund.
Over the course of his sixty-year profession within the mutual fund business, Vanguard Group founder John C. Bogle has witnessed a large shift within the tradition of the monetary sector. The prudent, value-adding tradition of long-term funding has been crowded out by an aggressive, value-destroying tradition of short-term hypothesis. Mr. Bogle has not been merely an eye-witness to those adjustments, however one of many monetary sector’s most energetic individuals. In The Clash of the Cultures, he urges a return to the frequent sense rules of long-term investing.
Provocative and refreshingly candid, this e-book discusses Mr. Bogle’s views on the altering tradition within the mutual fund business, how hypothesis has invaded our nationwide retirement system, the failure of our institutional cash managers to successfully take part in company governance, and the necessity for a federal commonplace of fiduciary responsibility.
Mr. Bogle recounts the historical past of the index mutual fund, how he created it, and the way exchange-traded index funds have altered its authentic idea of long-term investing. He additionally presents a first-hand historical past of Wellington Fund, a real-world case research on the success of funding and the failure of hypothesis. The e-book concludes with ten easy guidelines that may assist buyers meet their monetary targets. Here, he presents a standard sense technique that “may not be the best strategy ever devised. But the number of strategies that are worse is infinite.”
The Clash of the Cultures: Investment vs. Speculation completes the trilogy of best-selling books, starting with Bogle on Investing: The First 50 Years (2001) and Don’t Count on It! (2011)
John Wiley and Sons