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Don't Count on It!: Reflections on Investment Illusions, Capitalism, "Mutual" Funds, Indexing, Entrepreneurship, Idealism, and Heroes
Praise for Don't Count On It! This collection of Jack Bogle's writings couldn't be more timely. The clarity of his thinking--and his insistence on the relevance of ethical standards--are totally relevant as we strive to rebuild a broken financial system. For too many years, his strong voice has been lost amid the cacophony of competing self-interests, misdirected complexity, and unbounded greed. Read, learn, and support Jack's mission to reform the industry that has been his life's work.
--PAUL VOLCKER, Chairman of the President's Economic Recovery Advisory Board and former Chairman of the Federal Reserve (1979-1987)
Jack Bogle has given investors throughout the world more wisdom and plain financial 'horse sense' than any person in the history of markets. This compendium of his best writings, particularly his post-crisis guidance, is absolutely essential reading for investors and those who care about the future of our society.
--ARTHUR LEVITT, former Chairman, U.S. Securities and Exchange Commission
Jack Bogle is one of the most lucid men in finance.
--NASSIM N.TALEB, PhD, author of The Black Swan
Jack Bogle is one of the financial wise men whose experience spans the post-World War II years. This book, encompassing his insights on financial behavior, pitfalls, and remedies, with a special focus on mutual funds, is an essential read. We can only benefit from his observations.
--HENRY KAUFMAN, President, Henry Kaufman & Company, Inc.
It was not an easy sell. The joke at first was that only finance professors invested in Vanguard's original index fund. But what a triumph it has been. And what a focused and passionate drive it took: it is a zero-sum game and only costs are certain. Thank you, Jack.
--JEREMY GRANTHAM, Cofounder and Chairman, GMO
On finance, Jack Bogle thinks unconventionally. So, this sound rebel turns out to be right most of the time. Meanwhile, many of us sometimes engage in self-deception. So, this book will set us straight. And in the last few pages, Jack writes, and I agree, that Peter Bernstein was a giant. So is Jack Bogle.
--JEAN-MARIE EVEILLARD, Senior Adviser, First Eagle Investment Management
Insights into investing and leadership from the founder of The Vanguard Group
Throughout his legendary career, John Bogle-founder of the Vanguard mutual fund group and creator of the first index mutual fund-has helped investors build wealth the right way, while, at the same time, leading a tireless campaign to restore common sense to the investment world.
A collection of essays based on speeches delivered to professional groups and college students in recent years, in Don't Count on It is organized around eight themes
Illusion versus reality in investing Indexing to market returns Failures of capitalism The flawed structure of the mutual fund industry The spirit of entrepreneurship What is enough in business, and in life Advice to America's future leaders The unforgettable characters who have shaped his career Widely acclaimed for his role as the conscience of the mutual fund industry and a relentless advocate for individual investors, in Don't Count on It, Bogle continues to inspire, while pushing the mutual fund industry to measure up to their promise.
--PAUL VOLCKER, Chairman of the President's Economic Recovery Advisory Board and former Chairman of the Federal Reserve (1979-1987)
Jack Bogle has given investors throughout the world more wisdom and plain financial 'horse sense' than any person in the history of markets. This compendium of his best writings, particularly his post-crisis guidance, is absolutely essential reading for investors and those who care about the future of our society.
--ARTHUR LEVITT, former Chairman, U.S. Securities and Exchange Commission
Jack Bogle is one of the most lucid men in finance.
--NASSIM N.TALEB, PhD, author of The Black Swan
Jack Bogle is one of the financial wise men whose experience spans the post-World War II years. This book, encompassing his insights on financial behavior, pitfalls, and remedies, with a special focus on mutual funds, is an essential read. We can only benefit from his observations.
--HENRY KAUFMAN, President, Henry Kaufman & Company, Inc.
It was not an easy sell. The joke at first was that only finance professors invested in Vanguard's original index fund. But what a triumph it has been. And what a focused and passionate drive it took: it is a zero-sum game and only costs are certain. Thank you, Jack.
--JEREMY GRANTHAM, Cofounder and Chairman, GMO
On finance, Jack Bogle thinks unconventionally. So, this sound rebel turns out to be right most of the time. Meanwhile, many of us sometimes engage in self-deception. So, this book will set us straight. And in the last few pages, Jack writes, and I agree, that Peter Bernstein was a giant. So is Jack Bogle.
--JEAN-MARIE EVEILLARD, Senior Adviser, First Eagle Investment Management
Insights into investing and leadership from the founder of The Vanguard Group
Throughout his legendary career, John Bogle-founder of the Vanguard mutual fund group and creator of the first index mutual fund-has helped investors build wealth the right way, while, at the same time, leading a tireless campaign to restore common sense to the investment world.
A collection of essays based on speeches delivered to professional groups and college students in recent years, in Don't Count on It is organized around eight themes
Illusion versus reality in investing Indexing to market returns Failures of capitalism The flawed structure of the mutual fund industry The spirit of entrepreneurship What is enough in business, and in life Advice to America's future leaders The unforgettable characters who have shaped his career Widely acclaimed for his role as the conscience of the mutual fund industry and a relentless advocate for individual investors, in Don't Count on It, Bogle continues to inspire, while pushing the mutual fund industry to measure up to their promise.
603 pages, Hardcover
First published October 19, 2010
24 people are currently reading
520 people want to read
About the author
John C. Bogle
55 books581 followersJohn Clifton "Jack" Bogle (born May 8, 1929) is the founder and retired CEO of The Vanguard Group. He is known for his 1999 book Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor, which became a bestseller and is considered a classic.
More on http://en.wikipedia.org/wiki/John_C._...
More on http://en.wikipedia.org/wiki/John_C._...
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Displaying 1 - 21 of 21 reviews
April 8, 2011
There are few living investment specialists that compare to John Bogle. As founder of the renowned Vanguard Mutual Funds, Bogel has lived in the trenches of financial markets for the past fifty years and has been named as one of the “four investment giants of the twentieth century” by Fortune magazine.
It is with this life’s worth of experience, that Bogle commands respect as a judge and arbiter of the state of financial markets. In this, his ninth book, Bogle takes the cover off the ball of investing and elucidates a multitude of trends that have consumed money markets, often to the detriment of individual investors and even society as a whole.
Through a deep dive into trends and analysis, Bogle demonstrates how financial institutions have grown out of control (from 5 percent of the S&P 500’s earning power just a quarter century ago to 27 percent in 2007) leading to a situation where America no longer makes anything but where financial institutions push paper around to their benefit and few others. Through examples, studies, graphs and the analysis of his own and others (i.e. Berkshire’s Charlie Munger, etc.), Bogle paints a profound picture where Wall Street manipulation trumps logic, expectations are fueled by greed, and illusory projections create markets (speculation) that feed upon themselves for fleeting and often times, unsustainable success.
While Bogle focuses on recent history, exposing valuation shams (i.e. paper vs. rock where AOL is the paper and TimeWarner is the rock), false projections for everything from pension fund returns to mutual fund performance, the inherent risks of financial engineering, the hidden costs of intermediation, the reverberations of indexing, the perils of “creative” accounting and even his own undoing in the great speculation bubble of the Go-Go years, his value comes from having the wisdom of many years experience and a “I have really seen it all” point of view.
Bogle’s classic 1999 book, “Common Sense on Mutual Funds,” was once lauded for its ability to “discuss sensitive matters that other authors ignore; exposing the conflict of interest between buyers and sellers that is inherent in our economic system.” After half a century of experience, Bogle takes that view even further in this 603 page, potential swan-song volume (Bogle turns 82 next month). For anyone looking for a world-class, long and detailed view of the American investment markets and the teutonic forces at play in the world of modern day investing, “Don’t Count On It: Reflections on Investment Illusions, Capitalism, Mutual Funds, Indexing, Entrepreneurship, Idealism, and Heroes” is not to be missed.
It is with this life’s worth of experience, that Bogle commands respect as a judge and arbiter of the state of financial markets. In this, his ninth book, Bogle takes the cover off the ball of investing and elucidates a multitude of trends that have consumed money markets, often to the detriment of individual investors and even society as a whole.
Through a deep dive into trends and analysis, Bogle demonstrates how financial institutions have grown out of control (from 5 percent of the S&P 500’s earning power just a quarter century ago to 27 percent in 2007) leading to a situation where America no longer makes anything but where financial institutions push paper around to their benefit and few others. Through examples, studies, graphs and the analysis of his own and others (i.e. Berkshire’s Charlie Munger, etc.), Bogle paints a profound picture where Wall Street manipulation trumps logic, expectations are fueled by greed, and illusory projections create markets (speculation) that feed upon themselves for fleeting and often times, unsustainable success.
While Bogle focuses on recent history, exposing valuation shams (i.e. paper vs. rock where AOL is the paper and TimeWarner is the rock), false projections for everything from pension fund returns to mutual fund performance, the inherent risks of financial engineering, the hidden costs of intermediation, the reverberations of indexing, the perils of “creative” accounting and even his own undoing in the great speculation bubble of the Go-Go years, his value comes from having the wisdom of many years experience and a “I have really seen it all” point of view.
Bogle’s classic 1999 book, “Common Sense on Mutual Funds,” was once lauded for its ability to “discuss sensitive matters that other authors ignore; exposing the conflict of interest between buyers and sellers that is inherent in our economic system.” After half a century of experience, Bogle takes that view even further in this 603 page, potential swan-song volume (Bogle turns 82 next month). For anyone looking for a world-class, long and detailed view of the American investment markets and the teutonic forces at play in the world of modern day investing, “Don’t Count On It: Reflections on Investment Illusions, Capitalism, Mutual Funds, Indexing, Entrepreneurship, Idealism, and Heroes” is not to be missed.
November 4, 2017
Bogle's view on financial industry definitely resonates with me. The book however is a collection of 30 essays and speeches reshuffling the same dozen or so core ideas. The passages are sometimes repeated word for word in 5 or so different chapters. The book could easily be 5 times shorter without losing any original point of the author. The publisher/editor has done a disservice to Bogle's otherwise important and worth spreading ideas.
December 27, 2021
Big collection of essays, many based on speeches. Quite repetitive, so I read 2 a day for over a month and took it slow.
Great wisdom contained herein, however. I am a fan of Vanguard, and I’m convinced of Bogle’s arguments on index funds over mutual funds. This guy has helped tens of thousands of average people become rich, and revolutionized the financial sector.
Great wisdom contained herein, however. I am a fan of Vanguard, and I’m convinced of Bogle’s arguments on index funds over mutual funds. This guy has helped tens of thousands of average people become rich, and revolutionized the financial sector.
February 5, 2017
I love Bogle's financial ideas, but his writing is pretty dry.
I guess I don't need any more convincing anyway. Don't read his books, just buy Vanguard index funds.
I guess I don't need any more convincing anyway. Don't read his books, just buy Vanguard index funds.
July 27, 2020
Богл - крутейший мужик, но книга не понравилась. Мысли интересные но повторяются в каждой главе.
November 2, 2018
If you've read books by the author before, and I have [1], there is much that the reader will find familiar here. That is not necessarily a bad thing. I must say that I was pleased with a lot of what I read here, and if I did not agree with everything, like the author's optimism about the leadership of former president Obama, the author's familiar blend of conversational tone, literary and biblical allusions, and a high moral tone make in general for a very enjoyable read. Even before becoming familiar with the author and his own philosophy my own cautious and careful view about avoiding high cost investments and buying and holding for the very long term would have made me considered a Boglehead even before I knew what that was. Admittedly, this book was a bit longer than I would have preferred and is somewhat redundant, but if one is looking for a concentrated set of Bogle's shorter work, this book is definitely a worthwhile read under those circumstances, and I suspect that a lot of people would enjoy that.
At nearly 600 pages, this is a longer book than the majority that I read, but it can be read pretty quickly for a book of its size. In terms of its material, the book is divided into seven parts and thirty-five total chapters. The first part of the book examines investment illusions (I) including the perils of numeracy (1), the relentless rules of humble arithmetic (2), the telltale chart (3), an important question about costs (4), and the importance of recognizing the obvious (5). After that the author discusses some failures of contemporary capitalism (II) like the perils of management (6), how to fix the broken financial system (7), business and investment values (8), a crisis in ethics (9), black swans (10), and the go-go years of the author's young adulthood (11). The author then turns his attention to "mutual" funds (III) with a look at how to re-mutalize the fund industry (12, 13), the fiduciary principle (14), fund directors and myths (15), and an appeal for high standards of commercial honor (16). The author then talks about what's right with indexing (IV) including chapters on what we can learn from it (17), what more needs to be learned as it becomes more common (18), the chief cornerstone (19), and the convergence of indexing and active management (20). After that come four chapters on entrepreneurship and innovation (V) comparing the 18th and 21st century (21), giving seventeen rules of entrepreneurship (22), looking at Vanguard as a heroic journey (23), and examining what happens when innovation goes to far (24). The author then turns to idealism (IV) with seven chapters (25-31) that are taken from his commencement addresses at various schools and universities. Finally, the author turns his attention to four heroes and mentors (VII) in Walter Morgan (32), Paul Samuelson (33), Peter Bernstein (34), and Dr. Bernard Lown (35).
No doubt many people would consider Bogle a mentor when it comes to their own approach to finance, whether it is combining a high-toned moral worldview and a strong degree of idealism and classical learning with a distinct lack of tact and and unwillingness to sugarcoat harsh realities. That combination of realism and idealism is admittedly an unusual one but Bogle manages to do a good job in putting the two together. This book has some degree of repetition within itself and with the remainder of the author's work, but that repetition is due to the fact that the author has a very consistent moral worldview and business philosophy and does not appear to be tired of saying it over and over again. And as long as you do not tire of reading it over and over again, there is a lot you are likely to enjoy in this volume of conversational but rigorously detailed discussion about finance and capitalism and virtue.
[1] See, for example:
https://edgeinducedcohesion.blog/2018...
https://edgeinducedcohesion.blog/2018...
At nearly 600 pages, this is a longer book than the majority that I read, but it can be read pretty quickly for a book of its size. In terms of its material, the book is divided into seven parts and thirty-five total chapters. The first part of the book examines investment illusions (I) including the perils of numeracy (1), the relentless rules of humble arithmetic (2), the telltale chart (3), an important question about costs (4), and the importance of recognizing the obvious (5). After that the author discusses some failures of contemporary capitalism (II) like the perils of management (6), how to fix the broken financial system (7), business and investment values (8), a crisis in ethics (9), black swans (10), and the go-go years of the author's young adulthood (11). The author then turns his attention to "mutual" funds (III) with a look at how to re-mutalize the fund industry (12, 13), the fiduciary principle (14), fund directors and myths (15), and an appeal for high standards of commercial honor (16). The author then talks about what's right with indexing (IV) including chapters on what we can learn from it (17), what more needs to be learned as it becomes more common (18), the chief cornerstone (19), and the convergence of indexing and active management (20). After that come four chapters on entrepreneurship and innovation (V) comparing the 18th and 21st century (21), giving seventeen rules of entrepreneurship (22), looking at Vanguard as a heroic journey (23), and examining what happens when innovation goes to far (24). The author then turns to idealism (IV) with seven chapters (25-31) that are taken from his commencement addresses at various schools and universities. Finally, the author turns his attention to four heroes and mentors (VII) in Walter Morgan (32), Paul Samuelson (33), Peter Bernstein (34), and Dr. Bernard Lown (35).
No doubt many people would consider Bogle a mentor when it comes to their own approach to finance, whether it is combining a high-toned moral worldview and a strong degree of idealism and classical learning with a distinct lack of tact and and unwillingness to sugarcoat harsh realities. That combination of realism and idealism is admittedly an unusual one but Bogle manages to do a good job in putting the two together. This book has some degree of repetition within itself and with the remainder of the author's work, but that repetition is due to the fact that the author has a very consistent moral worldview and business philosophy and does not appear to be tired of saying it over and over again. And as long as you do not tire of reading it over and over again, there is a lot you are likely to enjoy in this volume of conversational but rigorously detailed discussion about finance and capitalism and virtue.
[1] See, for example:
https://edgeinducedcohesion.blog/2018...
https://edgeinducedcohesion.blog/2018...
November 11, 2024
This book is a collection of essays and speeches. There is little need to read all the chapters as there is much redundancy of the themes. Even after reading 10 of the 28+ chapters I was going over old material. That said the essays are excellent. It is an amazing record of the accomplishments and theories of John Bogle.
April 14, 2021
John Bogle is a great man who invented index investing, but this book is just a set of his articles. In many of these articles, he's telling about the same things. So, you're reading the same story over and over again.
July 1, 2020
Minor Bogle, some good insights but lots and lots of repetition, for completists
February 19, 2021
This should not be your first book on index fund. Still recommend it.
May 28, 2024
Great compilation of Saint Bogle writings
January 15, 2025
If you read other Bogle books, I found this one to be similar. Great read to learn contrarian views to the mass marketplace of financial advisors and "experts."
May 12, 2025
Так много повторов, не имеющих ценности. Основные идеи, которые много раз повторяются, можно изложить на 30 страницах. А идеи мне понравились.
January 28, 2021
Можно было бы писать покороче. Есть немало дельных мыслей, но все затоплено в безумном объеме текста.
Если нет времени все читать, читайте только:
Глава 11
Часть третья: еще один пузырь
Глава 12
«Альфа» против «Омеги»: снижение издержек, рост рыночной доли
Глава 13
Оценка результатов деятельности со стороны высшей инстанции
Расходы поднимают свою (уродливую) голову
Глава 17
Исследование Merrill Lynch и BARRA
Индекс S&P500
Индекс S&P500 – это действительно «рынок»?
«Бенчмаркинг»
Вариации на тему долгосрочного индексного инвестирования
Глава 18
Глава 19
Глава 20
Глава 21
Инвестиционная мудрость: Франклин – в XVIII в., Vanguard – в XX в.
Глава 24
Если нет времени все читать, читайте только:
Глава 11
Часть третья: еще один пузырь
Глава 12
«Альфа» против «Омеги»: снижение издержек, рост рыночной доли
Глава 13
Оценка результатов деятельности со стороны высшей инстанции
Расходы поднимают свою (уродливую) голову
Глава 17
Исследование Merrill Lynch и BARRA
Индекс S&P500
Индекс S&P500 – это действительно «рынок»?
«Бенчмаркинг»
Вариации на тему долгосрочного индексного инвестирования
Глава 18
Глава 19
Глава 20
Глава 21
Инвестиционная мудрость: Франклин – в XVIII в., Vanguard – в XX в.
Глава 24
January 20, 2016
This is a depressing book that I finished earlier this year. Be sure to not look at your 401K statement right before or right after reading this book.
I can't quite recommend it because it repeats itself too much. It is a collection of John Bogles' speeches and writing, most of which on their own are excellent. As a collection, they make for a redundant slog.
However, the argument Bogle makes (i.e., costs matter in investing, and they matter tremendously, also the intermediaries take far too much of the reward for the tiny value they provide) are worth hearing and really studying. Though I had heard his low cost arguments before, I had never seen such a well done breakdown of how much "head-wind" non-index investments must overcome over a long time (20 year) period. Taxes, trading costs and liquidity demands are all in addition to the visible management fees and they are not at all obvious.
I'm not a full disciple of indexing, but if I were, this book would keep me true to that faith forever. It is very compelling.
It also meshes well with the parasite book I just read. Think of it this way - the intermediaries (bankers, brokers, investment companies, other large investors, etc) are the parasites and your individual investment capital is the host. It mostly doesn't turn out well for you (or your money).
Think of your average mutual fund or a new Wall street investment product as a serious infestation of liver flukes and you are well on the way to right reasoning.
Bogle's assessment of just how much these free-loaders take is made by way of showing the size of the "financial industrial complex". All of the earnings for these companies and industries he described had to come from the market returns - and by definition could not have gone to the actual investor. I had not heard that argument previously or thought about it that way. It tends to make one genuinely angry to realize just how much investor wealth these parasites consume every year, typically offering very little in return.
So, I do recommend that you read a few of his essays in this book and skim the rest.
I can't quite recommend it because it repeats itself too much. It is a collection of John Bogles' speeches and writing, most of which on their own are excellent. As a collection, they make for a redundant slog.
However, the argument Bogle makes (i.e., costs matter in investing, and they matter tremendously, also the intermediaries take far too much of the reward for the tiny value they provide) are worth hearing and really studying. Though I had heard his low cost arguments before, I had never seen such a well done breakdown of how much "head-wind" non-index investments must overcome over a long time (20 year) period. Taxes, trading costs and liquidity demands are all in addition to the visible management fees and they are not at all obvious.
I'm not a full disciple of indexing, but if I were, this book would keep me true to that faith forever. It is very compelling.
It also meshes well with the parasite book I just read. Think of it this way - the intermediaries (bankers, brokers, investment companies, other large investors, etc) are the parasites and your individual investment capital is the host. It mostly doesn't turn out well for you (or your money).
Think of your average mutual fund or a new Wall street investment product as a serious infestation of liver flukes and you are well on the way to right reasoning.
Bogle's assessment of just how much these free-loaders take is made by way of showing the size of the "financial industrial complex". All of the earnings for these companies and industries he described had to come from the market returns - and by definition could not have gone to the actual investor. I had not heard that argument previously or thought about it that way. It tends to make one genuinely angry to realize just how much investor wealth these parasites consume every year, typically offering very little in return.
So, I do recommend that you read a few of his essays in this book and skim the rest.
February 5, 2011
As its a collection of speeches and essays, it's of course not as cohesive or useful as most other Bogle books. It's not an investing book or a call to action (like The Battle for the Soul of Capitalism).
It's also rather depressing. The odds really are stacked against the vast majority of people. We play the game to the degree we have to in order not to kill ourselves working, go into debt or live our old age in poverty. But to not invest, to not save like crazy, and to not start from a fairly young age will make life very difficult for most Americans.
But hey, at least I don't live in Liberia.
It's also rather depressing. The odds really are stacked against the vast majority of people. We play the game to the degree we have to in order not to kill ourselves working, go into debt or live our old age in poverty. But to not invest, to not save like crazy, and to not start from a fairly young age will make life very difficult for most Americans.
But hey, at least I don't live in Liberia.
July 25, 2011
Bogle's magnum opus: it is no exaggeration to call this one of the most important finance and investment books of our era, and one of the most important for the future of this nation. Bogle is a voice crying in the desert to give common investors a fair shake at the returns the industry has increasingly skimmed (or crashed) from their portfolios. The facts here will open many eyes, and over a lifetime will be worth a veritable fortune. Recommended!
January 24, 2011
Brilliant and inspiring! Chapters 26-30 are an epiphany of humanities. Shall be read by every student.
February 16, 2012
Several points are repeated for emphasis throughout the book. For retention and understanding, I found this very helpful. This almost reads like a biography. Good one to pick up.
January 31, 2013
A good message. But very repetitive. Also, Bogle quotes too much.
March 5, 2011
Outstanding. If you are going to invest you need to read Bogle.
Displaying 1 - 21 of 21 reviews