The Modern Corporation and the Public Interest

Note: Mr. Bogle's comment does not necessarily represent the current management's view of Vanguard. 1 From 1947 to 1951 I learned their research as a Department of Economics at Princeton University.

Not a long-term holder of shares ("owner") ("person"). The stock lessor does not care - and

What is the real constructor of the company's intrinsic value? This difference is economically unacceptable

My colleague's fourth quartile - "My CEO is better than this!"

There is no CEO's reward called "free market". Instead, it is a closed market.

2 I have served as Chief Executive Officer (CEO) for over 30 years. And through my career, faithful, well-recognized, well-trained labor is very precious.

The world's largest enterprise has declined to $ 160 billion. Net loss from market value since 2000

3 Quoted from the column of Jason Zweig, reporter of The Wall Street Journal on 21 August 2017. 4 A topic of a speech by the New York Analysts Association held in New York on October 20, 1999.

5 The field of institutional fund management is very concentrated. The top ten asset management companies make up almost half of all institutional assets

The interests of our citizen / investor ("city") are increasingly giving priority to its interests.

Information is at your fingertips, and almost all big public places have many assets

6 This list reflects the reform advocated by Robert A. G. Monks, who has long supported corporate governance. 7 Dr. Reinhart was a human prince, having no relationships with students or vested interests, left the world at the age of 80 on November 14, 2017. The world will lack his wisdom, his passion and his unwavering honesty. I am the same!

For example, shareholders of at least two years have full voting rights and shareholders within one year.

8 In early 2002, at the speech of the New York Securities Analysts Association, I proposed the creation of the "Federation of Long-Term Investors" for the first time. If you are interested in this idea and you can convince some of the biggest fund managers I will participate, Warren Buffett suggested to join. I failed. This idea is dead

Short-term stock price, but sustainable creation of essential value of business. After all,

Employees, their communities, and the interests of our society. Please do not think

9 Roosevelt's speech took place at the John Brown Memorial Park in Osawatom, Kansas on August 31, 1910.

For those who have little profit - and in particular how it is achieved - use profitability as the cornerstone of modern business: they will vote on the wallet if the number falls. The slave is in the bottom line, and the leader believes that it is king to share the rate of return. So, with our inner benefits, we have started to improve productivity, track and measure production within 1 inch of life. Of course, this is more abundant in the manufacturing industry, but focuses on knowledge work as well. Even the startup is not immune to this way of thinking, even if business grows and investors want to see profits. Freedom of destruction and innovation can quickly disappear

Modern companies were born to serve "foreign interests of the state" from this concentrated financial and political influence. In the past 150 years, the power and influence of a company grew steadily and companies have learned rapidly from past mistakes. Their growing economic safety makes it possible for them to operate democratic processes very effectively and effectively, and in particular to develop government policies in the United States and the European Union. Specific examples are well documented, and politicians in these countries are developing mainly in conflict of interest. As a result, global economic policies are controlled by a few politicians and companies with similar economic interests.