Jack Bogle: Trump Is Wrong, ETFs Are Bogus And Foreign Investing Is Useless

Jack Bogle

Jack Bogle: Trump Is Wrong, ETFs Are Bogus and Foreign Investing Is Useless by Nora Morrison, TheStreet

H/T Dataroma

Bogle is “not on board with international investing,” he said flatly. “I don’t do international. I never have.”

Many investors disagree with him, but he’s firmly convinced that most investors don’t need international investments. If they want international funds, he doesn’t recommend putting more than 20% of an equity portfolio in those stocks. He doesn’t see international bonds as appealing at all.

“If you invest in the S&P 500 (SPY) , you own an international portfolio,” Bogle said. Around 50% of your revenue comes from outside the U.S. under those conditions, he remarked, and that’s plenty. He also pointed out that the correlation between U.S. and international company performance has been converging, so there is less of a diversification benefit than there used to be.

Must Read: Retirement Misjudgment: You Probably Are Measuring Portfolio Performance All Wrong

The U.S. is the most innovative and entrepreneurial country in the world, Bogle remarked, and investing there should be good enough for U.S. investors. It also avoids currency risk and risks in international countries, plus domestic investing is cheaper. Plus, the U.S. has the strongest financial institutions and shareholder protections in the world, Bogle said.

Then Bogle played the Warren Buffett card. When Buffett decided to leave his wife’s inheritance in the S&P 500-benchmarked Vanguard 500 Index Fund (VFINX) (VFIAX) (VOO) , he effectively decided to opt for a purely domestic investment for his wife.

Saint Jack’ vs. The Donald

Donald Trump and Bogle don’t agree on one big point, Bogle said.

Bogle tries to impress on investors that average results are exactly what they should seek — market returns that have very low transaction costs and don’t risk underperformance or a lack of diversification.

Enough. That’s the title of Bogle’s book urging readers to change their perspective and think about financial and personal success in light of what’s enough, not in terms of trying to get more, more, more.

See full article here.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)



About the Author

Guest Post
If you are interested in contributing to ValueWalk on a regular or one time basis - email us at info(at)valuewalk.com

1 Comment on "Jack Bogle: Trump Is Wrong, ETFs Are Bogus And Foreign Investing Is Useless"

  1. Here is something extremely interesting that is worth to pay attention , a superb opportunity for work for those who want to utilise their free time to make some extra money using their computers… I have been working on this for last two and half years and I am earning 50-80 dollar/ hour … In the past week I have earned 13,245 dollars for almost 20 hours sitting ….

    Any special kind of skills or qualification is not required for this, just normal typing and a reliable internet connection ….

    Time limitations are not here to start work … You may work on this any time when you get some time ….

    Check it out how I’ve been doing this….view WebsiteIink on my` profile` to know how I use to work on this`

    _e

Leave a comment

Your email address will not be published.