There is no one better qualified to tell us about the failures of the American financial system and the grotesque abuses that have taken place in recent years than John Bogle, who as founder and former chief executive of the Vanguard mutual funds group has seen firsthand the innermost workings of the financial industry A zealous advocate for the small investor for than fifty years, Bogle has championed the restoration of integrity in industry practices As an astute observer and commentator, 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.This book tells not just a story about what went wrong but, important, the story of why we lost our way and of how we can right our course Bogle 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 Every investor, analyst, Wall Streeter, policy maker, and businessperson should read this deeply informed book....
|Title||:||The Battle for the Soul of Capitalism|
|Publisher||:||Yale University Press November 27, 2006|
|Number of Pages||:||288 pages|
|File Size||:||794 KB|
|Status||:||Available For Download|
|Last checked||:||21 Minutes ago!|
The Battle for the Soul of Capitalism Reviews
Bogle, in his book, makes an excellent case that shareholders and investors in the financial sector have been taken for a ride by those in positions of fiduciary responsibility (i.e., primarily high level corporate officers and fund managers). Bogle separates his book into four sections, one examining shenanigans at the individual corporate level (mostly involving corporate governance), the second involving shenanigans by the mutual fund industry, the third involving those by other sectors of the investment industry and the fourth, most refreshingly, proscribing a set of reforms to mitigate against the problems discussed in the previous three chapters.
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 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.