Set forth below is the text of an -mail (with the subject heading “More Defamation/Intimidation/Deception at Bogleheads Forum) that I sent to Vanguard Founder John Bogle a few moments ago:
This is Rob Bennett, the fellow who has been pushing that crazy, newfangled approach to indexing (Valuation-Informed Indexing) that has caused our mutual friend Mel Lindauer and a few others to go off their rockers in recent years. I wrote you on July 9, 2009, asking for your help with the problem of abusive posting employed at the Bogleheads Forum to discourage community members there from making an effective case pointing out the dangers of Buy-and-Hold Investing (and to get those who don’t pay heed to the warnings removed!). I believe that the time has come for a follow-up report.
The problem has gotten both a bit better and bit worse in the time since. It has gotten better because the stock crash and the economic crisis have helped many middle-class investors appreciate the dangers of Buy-and-Hold (if you do not today possess a good understanding of why Buy-and-Hold is the purest and most dangerous Get Rich Quick approach ever, I invite you to read the material at the links set forth in the blog entry referred to below or to send me a return e-mail asking any questions you are struggling with re this matter). I haven’t been banned at any new boards or blogs for six months now! We are gradually seeing the changes we need to see to take your many powerful insights to a far better place that we have been able to take them in earlier days.
However, things have also gotten worse as those who have participated in defamation and deception and intimidation and word games in “defense’ of Buy-and-Hold have become even more defensive as it has begun to hit them how much financial damage they have done with their advocacy of this now-discredited but once very promising idea (fated to achieve its promise as we all move together to the Valuation-Informed Indexing Era, to be sure).
The optimistic and pessimistic signals recently met in one strange Bogleheads thread reporting on exciting research by Wade Pfau, Associate Professor of Economics at the National Graduate Institute for Policy Studies in Tokyo, Japan, showing that Valuation-Informed Indexing beat Buy-and-Hold in 102 of 110 30-year periods. That of course is breakthrough stuff that we should all be working together to spread to every middle-class investor alive. The crazy, insane, sad, pathetic part of the thread (about half of the posts put forward rationalizations for not doing all we can to get this wonderful news out to middle-class investors as quickly as possible), is summed up in the words of a post put forward by Site Administrator Alex Frakt.
Here are Fract’s words: “We’ve had to remove a couple of comments and posts from this thread regarding Rob Bennett. I have been in contact with the OP offline and he is now fully aware of hocus’ modus operandi, so there is no further need for these posts. Let’s continue to keep this forum a hocus-free zone. P.S. For anyone confused by this message, I suggest googling “hocomania.'”
And — Yucko!
We need your help, man! Really!
We need it now. By the close of business today if at all possible!
I wish you luck in all your future endeavors and look forward to working with you to bring your many wonderful and powerful insights from earlier days to fruition as we move from the discredited Buy-and-Hold strategy to the investing model that we all know you would have put forward in the first place if only Shiller’s research showing that valuations affect long-term returns had been available to you back in the 1970s.
Take a sad song and make it better, John. Please?
Here’s a link to my blog entry reporting on Frakt’s words (there are 12 links to background materials contained therein):