Jack Bogle interview

Here is a link to a 20 minute Jack Bogle interview (Marketwatch link). For those who don't know, Jack Bogle is the founder of Vanguard, and the lead advocate for indexing.

For the gold crowd, Bogle makes a few comments about gold starting at about the 17 minute mark in the video.

I doubt the interview will convince any indexer skeptics to become indexers. Much more compelling than the interview is performance and historical data. Indexers tend to outperform 80% of actively managed money. The primary reasons are that index and rebalance, buys when asset classes are cheap, and that indexers tend to have lower transaction and tax costs than active management. There may be short time periods where active managers outperform, and there will always be about 5% of active money that does extremely well. Indexers tend to avoid over investing in hot sectors, or hot asset classes, which is what many active managers and individual investors tend to do. Chasing what is hot, tends to lead to poor long term performance.

Here is a link to a discussion on the video at the Boglehead forum (link2).