Set forth below are some words that I posted in a comment to the Goon Central board last Thursday:
Do you think I’m in it for the money? OR the other ‘Goons”
I certainly don’t think you are in it for the money, Drip Guy. I don’t think Greaney is. I don’t think Lindauer is.
I don’t think Bogle advocates Buy-and-Hold for money reasons. I think he advocates it because he believes in it.
But I certainly think that money considerations have played a big role in the 30-year cover-up of the academic research showing that Buy-and-Hold can never work in the long term.
I think Bogle and lots of others would love to be able to start over and to advocate Valuation-Informed Indexing rather than Buy-and-Hold. But they are afraid of the trillions of dollars in legal liabilities they have taken on by continuing to advocate Buy-and-Hold for 30 years after research was published showing that it can never work. I believe that they painted themselves into a corner and are now feeling desperately trapped.
I see it as my job to help them and to help us all achieve the transition we need to make. The biggest obstacle I face is the lack of support I get from people like Bogle. Bogle could turn this thing around with one speech that he arranged to have written up on the front page of the New York Times. Putting it off doesn’t make it easier. Putting it off makes it harder.
Money is a big part of the problem there. Money considerations are one of the primary things holding us back. Another is pride. Another is genuine ignorance. Another is complacency. There’s more than one thing holding us back. But, yes, I am certain that money is a big factor here.