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Trillions

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Dod101
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Trillions

#454446

Postby Dod101 » October 30th, 2021, 11:47 pm

I would recommend this book particularly for those who are dedicated to index funds but in general I would imagine that most would enjoy it. Written by Robin Wigglesworth, apparently Global Finance Correspondent of the FT, no less. He writes about the development of the index fund by of course Jack Bogle (and others), and how Vanguard came to be the name of his funds.

Clearly written by a journalist, it is a great read!

Dod

scrumpyjack
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Re: Trillions

#454585

Postby scrumpyjack » October 31st, 2021, 1:30 pm

The Wiki entry for John Bogle gives an interesting summary of his life
https://en.wikipedia.org/wiki/John_C._Bogle

Lootman
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Re: Trillions

#454602

Postby Lootman » October 31st, 2021, 2:00 pm

Dod101 wrote:I would recommend this book particularly for those who are dedicated to index funds but in general I would imagine that most would enjoy it. Written by Robin Wigglesworth, apparently Global Finance Correspondent of the FT, no less. He writes about the development of the index fund by of course Jack Bogle (and others), and how Vanguard came to be the name of his funds.

Clearly written by a journalist, it is a great read!

Bogle is widely attributed to be the founder of index funds, and is often referred to as the "father of index funds". But he really only created the first retail index fund, in 1975.

Four years prior to that in 1971, folks at Wells Fargo started an index fund for institutions, based on prior research at the University of Chicago. Whilst in 1973 the book "A random walk down Wall Street" became very popular, expressing similar ideas.

Wells Fargo then formed a joint partnership with Nikko Securities to market index funds institutionally. That company was purchased by Barclays Bank in the mid 1990s, which led to the formation of Barclays Global Investors (BGI), which launched the iShares series of ETFs (although not the first ETF, iShares popularised them).

BGI was then bought by Blackrock who currently offer iShares.

So if I were awarding index fund Oscars, I would award them equally to Bogle/Vanguard and Wells Fargo.

Dod101
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Re: Trillions

#454610

Postby Dod101 » October 31st, 2021, 2:34 pm

Lootman wrote:
Dod101 wrote:I would recommend this book particularly for those who are dedicated to index funds but in general I would imagine that most would enjoy it. Written by Robin Wigglesworth, apparently Global Finance Correspondent of the FT, no less. He writes about the development of the index fund by of course Jack Bogle (and others), and how Vanguard came to be the name of his funds.

Clearly written by a journalist, it is a great read!

Bogle is widely attributed to be the founder of index funds, and is often referred to as the "father of index funds". But he really only created the first retail index fund, in 1975.

Four years prior to that in 1971, folks at Wells Fargo started an index fund for institutions, based on prior research at the University of Chicago. Whilst in 1973 the book "A random walk down Wall Street" became very popular, expressing similar ideas.

Wells Fargo then formed a joint partnership with Nikko Securities to market index funds institutionally. That company was purchased by Barclays Bank in the mid 1990s, which led to the formation of Barclays Global Investors (BGI), which launched the iShares series of ETFs (although not the first ETF, iShares popularised them).

BGI was then bought by Blackrock who currently offer iShares.

So if I were awarding index fund Oscars, I would award them equally to Bogle/Vanguard and Wells Fargo.


All of this is covered in the book as well as the fact that Bogle started off working for Wellington in Boston, Mass, as in 'Duke of Wellington' and from there came the name Vanguard. But many more than Bogle feature in the book and it makes for a good read.

Dod

Dod101
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Re: Trillions

#455873

Postby Dod101 » November 5th, 2021, 11:56 am

Late on in the book there is a discussion on the effect of index investing and on the role of indexes (indices?) in general. For example, the author tells us, the S & P Dow Jones indices' committee suddenly caused Tesla to become worth hundreds of billions of dollars more, in the course of last year. All it had to do was announce that Tesla would be included in its index because of course index funds had to slavishly follow their index and buy whether Tesla was a good investment or not. The index funds have delegated their investment decisions to the companies that create the benchmarks. You could even say that they are active managers.

It goes on to discuss the often not so benign influence that index investing has on the investment world in general. Very interesting and quite thought provoking to me.

Dod


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