Trader Talk

Jack Bogle: What's In His Portfolio?


You think you're a long-term investor? Vanguard funds founder Jack Bogle was on our air this morning, and I talked with him on the phone shortly after. He told me has been dollar cost averaging since 1951, when he first invested in a defined contribution benefit plan. He said he made no changes in his personal portfolio--which is entirely invested in Vanguard funds--for the last several years.

He has two accounts--a personal account and a retirement fund. Here's how his combined holdings break down (all Vanguard funds unless noted):

60% bonds
--includes the Municipal Bond Fund & Total Bond Index, as well as investment in a corporate bond & intermediate term bond fund

--municipals are kept in the personal account for tax reasons

40% stocks
--80% in index funds like the S&P 500 Index Fund, Extended market Index, and Total Stock Market Index

--Approx. 20% in legacy funds owned by Vanguard for years: Windsor, Prime Cap, and Explorer.

--3% in International stocks, all of which are European stocks.

Questions?  Comments?