Vanguard: John Bogle

vanguard: Bogle made these comments in a webcast to 40,000 Vanguard clients, among the 10 million for whom Vanguard manages $3 trillion in assets, according to Market Watch. He spoke directly to the problem of "turnover," the technical term for how often the investments in a portfolio or mutual fund are sold and replaced over 12 months. John Bogle, the founder of investment giant Vanguard, sees another trend, one he calls "highly negative" for investors and worth worrying about: We've given up on holding investments and instead trade them nonstop. For a truly long-term investor, the lower the turnover the better in general. And so people are doing more and more swapping back and forth with one another creating value for Wall Street and subtracting value from themselves," Bogle said. "The same thing — very few people I think have thought about this — the same thing is happening in the mutual fund business. Yet the opposite has happened, in Bogle view a disturbingly negative trend. "Turnover in the stock market has gone from maybe 25% a year to 250% a year. (news.financializer.com). As reported in the news.