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Investment Research Since 1978

Disclosure

There is Only One Vanguard

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vanguardWe are often asked why we like Vanguard and Fidelity. Below is an excerpt from the February 2014 issue of Richard C. Young’s Intelligence Report in which Dick Young explains his history with Jack Bogle, founder of the Vanguard Group. As we all know, there is only one Vanguard.

P.P.S. In 2014, investors poured $216 billion into the Vanguard Group, which today is #1 in index-tracking products. I have been with Vanguard from the start. Vanguard founder Jack Bogle was at Wellington Management back in the early seventies in Boston. Wellington was an institutional account of mine in the years I was with Model Roland. I loved working with the guys at Wellington (today still the managers of my highly favored and owned Wellesley Income and GNMA), and I remember how excited I was when Jack announced his new Vanguard venture.

Over the many decades, I have never deviated from my allegiance to Wellington Management, Jack, or the Vanguard Group, and I continue to advise that you, as an individual investor, custody your family assets at either Vanguard or Fidelity Investments, home base for Richard C. Young & Co., Ltd. I am often asked why RCY Ltd. is no longer at Vanguard, where we began at our founding. The simple reason is that Vanguard was shutting down its advisor custody business. I was on a swamp boat tour in Louisiana when I received a phone call from John Brennan, Vanguard CEO at the time. John delivered the sad news, but told me that we were welcome to stay aboard. What great news. We remained with Vanguard until it was time for me to admit, sadly, that a wonderful era was over. We transferred to my friends at Fidelity, which had also been a valued account of mine at Model Roland. Today, as an individual investor, just like you, I have custody accounts at both of these extraordinary firms.

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E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.