QOTD: Milking the Cash Cow

Investors have pulled money from actively managed U.S. equity funds for nine straight years. They withdrew $98 billion last year while putting $167 billion into passively managed U.S. stock mutual funds and ETFs. The trend toward passive management is unlikely to reverse, Bogle argues. Investment firms that make their money off actively managed funds will milk the cash cow, but their business will wither, he says. Their thinking might go something like this: “‘We’ll shrink, but we’ll take a lot of money out of it on the way down, year after year.’ That’s what a cash cow is,” Bogle says. “In 25 or 30 years, they’ll be gone. That seems like an extreme statement, but I think it’s not without possibility.”

85-year-old Jack Bogle is still raiding the temple and flipping over the tables of the money-changers. Despite the fact that he has already officially won, with Vanguard managing more money than any other mutual fund shop and more than every hedge fund on earth combined.

Nice to see.

What's been said:

Discussions found on the web
  1. DevOps Consulting commented on Nov 02

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2015/03/12/qotd-milking-the-cash-cow/ […]

  2. td login commented on Nov 26

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2015/03/12/qotd-milking-the-cash-cow/ […]

  3. Intelligent Automation Solutions commented on Nov 26

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2015/03/12/qotd-milking-the-cash-cow/ […]

  4. concrete depot commented on Dec 12

    … [Trackback]

    […] There you can find 19062 more Info to that Topic: thereformedbroker.com/2015/03/12/qotd-milking-the-cash-cow/ […]

  5. mơ thấy bếp lửa cháy commented on Dec 22

    … [Trackback]

    […] Read More here on that Topic: thereformedbroker.com/2015/03/12/qotd-milking-the-cash-cow/ […]

  6. 사설토토 commented on Dec 24

    … [Trackback]

    […] Find More Information here to that Topic: thereformedbroker.com/2015/03/12/qotd-milking-the-cash-cow/ […]

  7. 토토사이트 commented on Dec 24

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2015/03/12/qotd-milking-the-cash-cow/ […]

  8. rbc royal bank online banking commented on Dec 28

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2015/03/12/qotd-milking-the-cash-cow/ […]

  9. CI CI services commented on Feb 07

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2015/03/12/qotd-milking-the-cash-cow/ […]