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About the AuthorJohn C. Bogle is Founder of The Vanguard Group, Inc., and President of the Bogle

Financial Markets Research Center. The Vanguard Group is one of the two largest mutual

fund organizations in the world. In 2004, TIME magazine named Mr. Bogle as one of the

world’s 100 most powerful and influential people and Institutional Investor presented him

with its Lifetime Achievement Award. In 1999, FORTUNE designated him as one of the

investment industry’s four “Giants of the 20th Century.”

John C. Bogle

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Foreword by ALAN S. BLINDERFormer Vice Chairman, Federal Reserve Board

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$29.95 USA / $35.95 CAN

[ c o n t i n u e d o n b a c k f l a p ]

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EAN: 9780470643969 ISBN 978-0-470-64396-9

Praise for DON’T COUNT ON IT!

M A T T E F I N I S H

In his Foreword, former Federal Reserve vice-chairman Alan S. Blinder writes, “America’s vaunted fi nancial system let us down big-time during the raucous decade of the 2000s.” In Don’t Count on It!, John C. Bogle—a man

Dr. Blinder refers to as “the conscience of Wall Street”—identifi es modern capitalism’s fl aws, explains how we arrived at this economic crossroads, and examines how we can begin to repair the damage before it’s too late.

Don’t Count on It! presents an anthology of Bogle’s latest thinking, focused on how numbers deceive us into seeing things as other than they really are. He also presents a cogent analysis of the chinks in the armor of a fi nancial system that has failed to live up to the responsibility owed to its individual and institutional investors.

Read and learn from the wise counsel of Vanguard’s founder about how we deceive ourselves into accepting illusory and evanescent numbers rather than focusing on fundamental and intrinsic reality. Bogle argues that we confuse the market of real investing with the market of expectations, disregarding the beauty of simplicity in favor of the wizardry that creates complex “products” that serve Wall Street at the expense of its clients. Specifi cally, Bogle discusses:

• The unconscionably high costs of fi nancial intermediation• The disgraceful failure of money managers and agents to abide by what should have been traditional fi duciary standards• The unfortunate consequences of the dominance of short-term speculation over long-term investment

The subjects of Bogle’s anthology go well beyond the investment markets, as indicated by the seven sections of Don’t Count on It!—Investment Illusions, The Failure of Capitalism, What’s Wrong with “Mutual” Funds, What’s Right with Indexing, Entrepreneurship and Innovation, Idealism and the New Generation, and Heroes and Mentors.

His book encourages readers to better understand our complex fi nancial system, to examine it, to debate it, to challenge it, and to fulfi ll our duty to ask simple questions and demand answers that are understandable, intelligent, and, above all, wise.

JOHN C. BOGLEis the founder of the Vanguard Group of Mutual Funds and President of its Bogle Financial Markets Research Center. He created Vanguard in 1974 and served as chairman and chief executive offi cer until 1996 and senior chairman until 2000. In 1999, Fortunemagazine named Mr. Bogle

as one of the four “Investment Giants” of the twentieth century; in 2004, Time magazine named him one of the world’s 100 most powerful and infl uential people, and Institutional Investor presented him with its Lifetime Achievement Award. In 2010, Forbesmagazine described him as the person who “has done more good for investors than any other fi nancier of the past century.” Mr. Bogle graduated from Blair Academy cum laude in 1947 and Princeton University in 1951, magna cum laude in economics. In 1999, he received the University’s Woodrow Wilson Award for distinguished achievement in the nation’s service.

Don’t Count on It! is Mr. Bogle’s ninth book. His earlier books include Common Sense on Mutual Funds, The Battle for the Soul of Capitalism, The Little Book of Common Sense Investing, and Enough.

“This collection of Jack Bogle’s writings couldn’t be more timely. The clarity of his thinking—and his insistence on the relevance of ethical standards—are totally relevant as we strive to rebuild a broken fi nancial system. For too many years, his strong voice has been lost amid the cacophony of competing self-interests, misdirected complexity, and unbounded greed. Read, learn, and support Jack’s mission to reform the industry that has been his life’s work.”—PAUL VOLCKER, Chairman of the President’s Economic Recovery Advisory Board and former Chairman of the Federal Reserve (1979–1987)

“Jack Bogle has given investors throughout the world more wisdom and plain fi nancial ‘horse sense’ than any person in the history of markets. This compendium of his best writings, particularly his post-crisis guidance, is absolutely essential reading for investors and those who care about the future of our society.”—ARTHUR LEVITT, former Chairman, U.S. Securities and Exchange Commission

“Jack Bogle is one of the most lucid men in fi nance.” —NASSIM N.TALEB, PHD, author of The Black Swan

“Jack Bogle is one of the fi nancial wise men whose experience spans the post–World War II years. This book, encompassing his insights on fi nancial behavior, pitfalls, and remedies, with a special focus on mutual funds, is an essential read. We can only benefi t from his observations.”—HENRY KAUFMAN, President, Henry Kaufman & Company, Inc.

“It was not an easy sell. The joke at fi rst was that only fi nance professors invested in Vanguard’s original index fund. But what a triumph it has been. And what a focused and passionate drive it took: it is a zero-sum game and only costs are certain. Thank you, Jack.” —JEREMY GRANTHAM, Cofounder and Chairman, GMO

“On fi nance, Jack Bogle thinks unconventionally. So, this sound rebel turns out to be right most of the time. Meanwhile, many of us sometimes engage in self-deception. So, this book will set us straight. And in the last few pages, Jack writes, and I agree, that Peter Bernstein was a giant. So is Jack Bogle.”—JEAN-MARIE EVEILLARD, Senior Adviser, First Eagle Investment Management

Jurgen Franks / C

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978-0-470-64396-9 978-0-470-10210-7978-1-118-19019-7

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