somebody from wall street, finance who believes deeply in the ethics and fiduciary obligations, banking as it should be. great way to feel. name of the book don t count on it jack, as always, thank you for being here. we ll be right back. [ male announcer ] nothing s proven to relieve pain better than extra strength bayer aspirin. it rushes relief to the site of pain. feel better? yeah. thanks for the tip. but i knew that i was going to need a day job. we actually have a lot of scientists that play music. the creativity, the innovation, there s definitely a tie there. one thing our scientists are working on is carbon capture and storage, which could prevent co2 from entering the atmosphere. we ve just built a new plant to demonstrate how we can safely freeze out the co2 from natural gas. it looks like snow. it s one way that we re helping provide energy with fewer emissions. it shas the biggest hotelelping deals we re offering the big deal guarantee.
saying all this? yeah. isn t that amazing? jack i want to tell you it saws a pleasure to read your books to hear you speak. somebody from wall street, finance who believes deeply in the ethics and fiduciary obligations, banking as it should be. great way to feel. name of the book don t count on it jack, as always, thank you for being here. we ll be right back.
i am an enormous fan of yours. you are one of the few, honest folks ob wall street who always put the client first. that s the way to build a good business. and you succeeded. explain where did your notion of the vanguard s fund come from and why? well it really begins with my senior thesis at princeton. the cover is orange and black. that s why. i wrote my senior thesis, i wanted to write it op topic, no one had written on i stumbled on an article on a magazine about the mutual fund. never heard of it. never knew anything about stocks or bonds. what year was this? hate to do this. 1951. a long time ago. 30 years before i graduated from the same place. don t even mention it. and i sketched out, wrote about the mutual fund industry and sketched out what the industry needed to do to be the kind of industry that lived up to its ideas. that was put the shareholder first. by shareholder, the investor?
thank you for beagle here. i want to preface this by saying i am an enormous fan of yours. you are one of the few, honest folks ob wall street who always put the client first. that s the way to build a good business. and you succeeded. explain where did your notion of the vanguard s fund come from and why? well it really begins with my senior thesis at princeton. the cover is orange and black. that s why. i wrote my senior thesis, i wanted to write it op topic, no one had written on i stumbled on an article on a magazine about the mutual fund. never heard of it. never knew anything about stocks or bonds. what year was this? hate to do this. 1951. a long time ago. 30 years before i graduated from the same place. don t even mention it. and i sketched out, wrote about the mutual fund industry and sketched out what the industry needed to do to be the kind of
and wall street puts up none of the capital. takes none of the rick, and gets 75% of the return. if you think that s a good deal, eliot, welcome to wall street. that exactly is the tension, the conflicts of interests that has been adherent in the so many mutual fund companies for decades. exactly. mutual fund history is a big market industry whose objective is to raise the amounts of assets under margarestand manag bigger you are, a lot of fee, leverage in the fees and huge economies at scale as you get bigger. the mutual fund industry by and large has not shared the economies to scale with investors, they ve shared it with themselves mgts your notion, teep the fees low to give a bigger return to the investor. scats exact lie right. transaction costs low and get rid of the sales. the index does. every fund in america, buy a vanguard fund that owns the stock market seven basis points no trading costs, high firsty,