The Battle for the Soul of Capitalism (Hardcover)

~ (Author) "We begin with an analysis of what went wrong in corporate America, reflected in "a pathological mutation" from traditional owners' capitalism to a new form,..." (more)
Key Phrases: Wall Street, Social Security, Merrill Lynch (more...)

Editorial Reviews

From Publishers Weekly

Despite its inflated title, this volume is a worthy jeremiad against corporate excess, especially the kind hastened by the mutual fund industry that Bogle, former CEO of low-cost Vanguard, knows well. Among the problems: inflated executive compensation and creative accounting that allows companies to claim profits even when they're in the red. Mutual fund companies, Bogle charges, care more about short-term results than long-term value, and many of them gain profits for larger parent corporations by charging investors unnecessary fees that undermine the funds' net returns. To remedy such problems, Bogle writes, mutual fund owners and their fiduciaries must exercise the corporate responsibility they now shirk, and fund boards must be reshaped to serve the interests of shareholders. He advances in all seriousness Warren Buffett's once-joking idea for a high tax on short-term trading gains and calls for a federal commission to examine the way pension funds are managed, as well as the state of our retirement systems in general. While other recent books, such as David Swensen's Unconventional Success: A Fundamental Approach to Personal Investment, marry similar criticisms with more advice for individual investors, Bogle—a rock-ribbed Republican businessman—still deserves attention in the precincts of power. (Oct.)
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Review

Anyone who cares about American business ought to be concerned about the dire warnings in [this] book . . . -- Kim Clark, U.S. News & World Report

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Product Details

• Hardcover: 288 pages
• Publisher: Yale University Press (November 1, 2005)
• Language: English
• ISBN-10: 0300109903
• ISBN-13: 978-0300109900
• Product Dimensions: 9.3 x 6.4 x 1.1 inches
• Shipping Weight: 1.3 pounds (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars  See all reviews (28 customer reviews)
• Amazon.com Sales Rank: #81,645 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

118 of 127 people found the following review helpful:

5.0 out of 5 stars "The Battle for the Soul of Capitalism", October 1, 2005

By	Patricia S. Larimore (Miami, Florida) - See all my reviews (REAL NAME)

Jack Bogle, often called the "concience of the industry," has written a powerful book on a subject that concerns every American--"capitalism." As founder and retired CEO of the second largest mutual fund company in the world, Mr. Bogle understands capitalism. He has the unusual ability (for a businessman) to write beautifully, logically and understandably for the average reader. "The Battle for the Soul of Capitalism" is the result.

The thrust of Mr. Bogle's message (documented over and over) is that corporations are now controlled by their managers--not by their owners (shareholders). (The average CEO compensation has soared to 280 times that of the average worker.) Mr. Bogle deftly lays out the problem, but more importantly, he gives us the solution that will return capitalism to its owners and value creation. I could not put the book down.

Taylor Larimore,
Miami, Florida

73 of 80 people found the following review helpful:

5.0 out of 5 stars A True Friend of Capitalism, October 8, 2005

By	Alfred Rappaport (La Jolla, CA) - See all my reviews (REAL NAME)

The individual investor has no better friend than Jack Bogle. Not only did he introduce index funds as a significant investment alternative some thirty years ago, but he has consistently and uncompromingly spoken out against the shareholder-unfriendly practices of his own mutual fund industry. "The Battle for the Soul of Capitalism" is a beautifully written, persuasively argued overview of how corporate and investment fund shareholders are short-changed. More importantly, Bogle offers sensible reforms to fix the problems. This is more than an investor's book, it is an essential book for all caring citizens.

38 of 41 people found the following review helpful:

5.0 out of 5 stars A Battle That Must Be Won, October 18, 2005

By	Allan S. Roth "dare_to_be_dull" (Colorado Springs, CO United States) - See all my reviews

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John Bogle points out what should have been obvious to me - that the ultimate owners of investment capital have virtually no influence on how their own capital is used. Instead the agents of the owners control the capital and act in a very self-interested incestuous manner. In short, they have stolen the soul of capitalism and robbed investors of trillions of dollars.

This book could only have been written by John Bogle, the man that has saved the common investor billions of dollars annually by refusing to operate in a status quo manner. This book eloquently explains what went wrong, why it went wrong, and most importantly, what we can do to fix it. I was steaming mad as I again realized how our trusted fiduciaries violated their duties of loyalty and prudence. The big question for me is will I stay mad enough to actually do something about it?

I highly recommend this book. It may be the first major shot in a long battle for capitalists to take back control of our own capital.