The Vanguard Group


Vanguard Founder Chats at

Vanguard Senior Chairman and Founder John C. Bogle responded to investor questions on an array of topics in an Expert Q&A posted on Morningstar's website on August 23, 1999.

Here's a sampling of what Mr. Bogle had to say:

On indexing versus active management investment strategies: "[There's] no reason whatsoever that index funds should not be 100% of an equity portfolio—especially for taxable assets. Ditto in bond funds, except for high-bracket investors, where index-like managed municipal bond funds carry the day. But if you want to hold actively managed funds, select from those with low costs, low turnover, managers with character and integrity, and consistent (rather than spectacular) records within their peer groups."

On Y2K: "I'm guessing that Y2K may cause some market turbulence toward year-end Whether it will even be visible in the face of all of the other noise in the marketplace is another question. But I've been assured by countless experts that no cataclysm awaits us, and ever the non-techie, I accept that. But whatever the case, I think an investor would be a fool to let either real or imagined problems at the turn of the millennium cause alterations in investment strategy. Stay the course."

On market-timing: "I've been around this business darn near a half century, and I know I can't do it successfully. What's more, I don't know anyone else who can. In fact, I don't even know anyone who knows anyone who has ever successfully timed the market over the long term. The word of the day: 'fuggedaboudit.'" .

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