From John Bogle at the 70th CFA Institute annual conference: In this new era where indexing is already such a powerful force, what is our role as investment professionals in financial analysis, stock selection and helping clients implement their investment programmes? We have moved a long way from a past in which information was precious and where "customers men" made a (nice) living by trading stocks for wealthy investors; where data on investment returns were scarce; where "professional management" was assumed to add value; where no index fund existed to establish the benchmark; where little thought was given to retirement planning. It’s all so different today, and it’s our duty to respond to this new environment. In the coming era, what considerations should investment professionals emphasise? For me, three concepts stand out: 1) Costs matter. 2) Trading transfers wealth from investors to Wall Street. 3) Focus on investment strategy for an investor’s lifetime. When we evaluate an...
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