This post is part of our Money Face-Offs feature. Let us know who you think comes out ahead in this head-to-head match-up, and check out our other Money Face-Off posts.
If you're into no-cost investing, you've probably heard the name John Bogle before. The founder of the world's most populated mutual fund company, Vanguard Group, Inc., is completely synonymous with the premise of low- to no-cost investing. To the average joe, that means index funds that track whatever index suits your investment tolerance and pocketbook. Bogle has been a fierce critic of the mutual fund industry (along with me), which charges huge sales loads for minimal performance metrics if you were to average out the thousands of them.
Bogle loves to posit this: Who's getting rich from mutual funds? Those who manage them, but hardly anyone else. Bogle continues to burn the active mutual fund industry on the basis of costs alone. He's probably the largest proponent of investor performance there is, even though he is no longer at the helm of Vanguard. Suggested reading for starters: Bogle on Mutual Funds. There are many other fine selections as well.
And then we have Peter Lynch, the mastermind behind one of the world's most popular mutual funds -- Fidelity's Magellan fund. Lynch began at Fidelity Investments as an intern (he caddied for the company's president) and turned the Magellan Fund into one of the world's largest and best-performing mutual funds until his retirement from the fund's active management in 1990.
If Bogle is the conscience of the mutual (index) fund industry, then Lynch is the epitome of a manager who actually produced excellent returns for his investors while at Fidelity. Lynch continues to impress investors who are interested in riding the backs of the mutual fund industry (less volatile) instead of individual equities (more volatile), and he's got the track record that very few can argue with, let alone hot new managers who don't perform worth diddly squat year to year (before they're booted). Suggested reading for starters: One Up on Wall Street.
Who do you trust -- Bogle or Lynch? Both have an excellent track record of speaking up for the rights of investors (instead of the rights of overpaid investment houses and managers), and to this day both have published excellent books that read very easily to the financial layman. No overcomplicated formulas and financial geek-speak here. Cast your vote.
Vote in our poll for Peter Lynch or John Bogle, and let us know in the comments why your choice has the financial edge in this match-up. Also be sure to check out our other Money Face-Offs.
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Reader Comments (Page 1 of 1)
9-24-2007 @ 9:16AM
Mike C said...
Mr Bogle is a great guy and started Vanguard. It is a shame that he was kicked out of his position by Brennan and his gang. If anyone ever worked at Vanguard, they know that the good times changed dramatically. Vanguard has become a low cost and "low salary provider", similar to a "Sweat Shop". At the same time, the rich get richer...all the millionaire clients and upper management get a free Financial Plan, no fees on brokerage trades, etc...while Brennan, Mortimer Buckley, McNabb, and Gus Sauter get the 8 figure salary ($10 million plus).
Peter Lynch is one of the best fund managers of all time. Imagine what he would have accomplished in the 2003 to present run in the market.
Since Vanguard has changed so much, my vote is for Peter Lynch.