The Battle for the Soul of Capitalism: How the Financial System Undermined Social Ideals, Damaged Trust in the Markets, Robbed Investors of Trillions—and What to Do About It by John C. Bogle (PDF)

Description

The legendary founder of Vanguard “presents an insider’s view of what’s wrong with corporate America and what can be done to improve it” (Burton G. Malkiel, author of A Random Walk Down Wall Street).New York Times-bestselling author of Enough and The Little Book of Common Sense Investing John Bogle has seen firsthand the innermost workings—and grotesque abuses—of the financial industry, and is renowned as an advocate for the small investor and for the restoration of integrity to the system. He knows that a trustworthy business and financial complex is essential to America’s continuing leadership in the world and to social and economic progress at home. In this book he reveals what went wrong and how we lost our way—and more importantly, how we can right our course. He argues for a return to a governance structure in which owners’ capital that has been put at risk is used in their interests rather than in the interests of corporate and financial managers. Given that ownership is now consolidated in the hands of relatively few large mutual and pension funds, the specific reforms Bogle details in this book are essential as well as practical—and should be considered by every investor, analyst, Wall Streeter, policy maker, and businessperson. “Deserves attention in the precincts of power.”—Publishers Weekly

User’s Reviews

Reviews from Amazon users which were colected at the time this book was published on the website:

⭐The first half of Bogle’s volume gives a detailed explanation of the problems with our stock market; the second half gives his solution proposals. And if John Bogle doesn’t know what is going on both openly and behind closed doors (read his qualifications), then no one does.This book describes how stock (mutual fund and corporate) managers are not “honest, competent and fair-minded…[or] doing the right thing.” (p. 89) And just how the “managers’ interest [are placed] ahead of the owners’ interest.” (p. 90) The recurrent theme is that corporate America has moved from owners’ capitalism to managers’ capitalism.Bogle describes “the pervasive…’happy conspiracy’ among corporate managers, CEOs, CFOs, directors, auditors, lawyers, Wall Street investment brokers, sell-side security analysts, buy-side portfolio managers, and indeed investors themselves–individual and institutional alike.” (p. 98)”More than one-fifth of…growth returns…during the past two decades has been siphoned off by fund managers…. More than three-fourths of the cumulative financial wealth produced…over an investment lifetime will be consumed by fund managers, leaving less than 25 percent for the investors. Yet it is the [95 million] investors [‘individuals of modest means–often via retirement plans’] who put up 100 percent of the capital and assume 100 percent of the risk.” (p.xxii)Not only does the author write about the “Captains of Industry” (or robber barons)–Rockefeller, J.P. Morgan and Carnegie–he deals with the current “casino mentality of so many institutional investors…” (p. 98) Yes, you will read of “the conspiracy between corporate money managers and institutional money managers. [We have] a gambler’s market instead of an investor’s market,” declares Bogle. (p. 118)Bogle explains why “institutional investors [should] move away from their present obsession with short-term earnings of dubious validity and towards a new obsession focused on the creation of intrinsic value over the long term.” (p. 114)Finally, Bogle does not let we individual investors off easy, either, by explaining “the failure of investment America to exercise its ownership rights over corporate America.As stated earlier, Bogle has solutions which you will read about in the second half of the book.

⭐This book is worth your time. It outlines how there have been philosophical changes in American Business in the last 50 years at the corporate, investor, and mutual fund levels. Owners of business and investors in mutual funds have less control over their outcome and the managers have more control. The central thesis of the book is that the managers have more self interest in the bottom line and manage only for short term gain. This contrasts to ownership control which result in a focus on long term welfare of the business and quality of the product. The last part of the book focus’s on the mutual fund industry and shows how managerial greed has skimmed off a lot of profits that should go to the investors (public owners). The case for index investing becomes more apparant and this seems logical since John Bogle the founder of Vanguard wrote it. It got a 4 because I felt that Bogle at times was too repititious and could have used more concrete examples in the book, but I learned a lot.

⭐John Bogle points out what should have been obvious to me – that the ultimate owners of investment capital have virtually no influence on how their own capital is used. Instead the agents of the owners control the capital and act in a very self-interested incestuous manner. In short, they have stolen the soul of capitalism and robbed investors of trillions of dollars.This book could only have been written by John Bogle, the man that has saved the common investor billions of dollars annually by refusing to operate in a status quo manner. This book eloquently explains what went wrong, why it went wrong, and most importantly, what we can do to fix it. I was steaming mad as I again realized how our trusted fiduciaries violated their duties of loyalty and prudence. The big question for me is will I stay mad enough to actually do something about it?I highly recommend this book. It may be the first major shot in a long battle for capitalists to take back control of our own capital.

⭐This is a must read for all investors and anyone working in the financial services industry. Written in 2005, Mr. Bogle outlines many of the underlying issues that have made headlines these past two years: corporate greed, neglect of the individual client’s interests, the lack of personal responsibility, and the quibbling over what is right vs. what is legal.Mr. Bogle discusses capitalism from the virtuous potential described by Adam Smith and the Founding Fathers, to the “giant scam” the investment business has become. Four years before President Obama called for a fiduciary standard for broker-dealers, Mr. Bogle argues why the fiduciary standard is a necessity.If you have any question whether or not acting with honor and integrity, and serving the best interests of your clients ultimately leads to business success, then this book ought to be at the top of your list.

⭐This should be required reading for anyone who ever invested for their future or plans on doing so. The grim picture that Bogle paints of our elected officials being overwhelmed by the investment institutions community should alarm every citizen. The casino mentality that is driving our investment practices is well described and easy to grasp for lay people as well as strong medicine for institutional investors who are critical to the survival of shareholder capitalism.

⭐Bogle is precise, honest and trustworthy. The book should be updated.

⭐It’s an incredible book exciting from the very first page.I reads it slowly, without haste, as my English is far from being perfect yet.I’d be very happy to make personal acquaintance with the author.Does anybody know how to do this?

⭐Great insight into how 401k investments aren’t the best. Do your due diligence.

⭐HIGHLY RECOMMENDED , a very bold book from father of vanguard group JHON C. BOGLE who invented the first vanguard 500 INDEX FUND IN 1976 ,which is now the largest fund and vanguard the largest fund house in the world.

⭐Hier schreibt ein Kenner der Materie, aus jahrzehntelanger Erfahrung und aus Überzeugung. Leider werden die Verantwortlichen nicht auf ihn hören. Schade!

⭐Not found.

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