skeptics ridiculed it as bogle's folly. by 1990, index investing had taken root the reason bogle turned out to be right in the 15 years ending in january 2017, nine out of ten actively managed large cap mutual funds underperformed vanguard's 500 index today vanguard has more than 5 trillion under management. >> jack bogle is pretty much like a t-rex in terms of what vanguard is versus a little tiny lizard over here you don't see too many folks anywhere in the world that manage that much money. >> after retiring in 1999, he started a research center on the vanguard campus. there he continued advocating for indexing and buy and hold long-term investing. he called trading stocks a loser's game. >> it comes right out of shakespeare. these moves are like a tale told by an idiot, full of sounding and fury, signifying nothing i think as speculators speculating on what other speculators are speculating on. >> speaking of speculation, few would have bet on vanguard back in 1975, even fewer still would have thought bogle would still

that is the famed investor jack bogle.e passed away at home surrounded by family yesterday 89 years old reactions are pouring in from the investment community there jack bogle was a familiar face to all of us here on cnbc. he was a man let's bring in becky quick as well he spoke with warren buffett about jack bogle's ledge endary career i know you interviewed mr. bogle many, many times i've interviewed him many, many times. the thick i love the most about jack was he could tell you, you know, us that we were wrong in sort of this gruff manner, but always with a gentlemenly air. you never got mad. he would be, like, becky, that's completely incorrect for some reason you never got upset about it because you knew he had his vision, and he had been proven right over time. >> you know, brian, that's completely accurate, and it's a great way of saying it i think just on a personal note, jack was always kind i've known him for about 18, 19 years, and i have to say he was kind to me when i was just starting out at cnbc just a gent

bogle's 88th birthday. he passed away yesterday and an outpouring for the man known as the father of index investing. another titan and really a disrdi disrupter in the financial community. jack was a pioneer who brought the wisdom of low cost long-term investing to millions of people since founding vanguard and extolling the power of index investing. we're all better because of it a look at bogle's legacy and the lasting impact he started is jason swi of the "wall street journal. old friends. you know a lot of sort of financial history and one of the things i read in your article was that bogle at least publicly was not always at a pro proponent of indexing. there was a time he was anything but. >> he kind of madea virtue out of necessity when he was fired from wellington company in 1974, he had to become a proponent of indexing because there was little else that was available to this fledgling company he just founded vankwaguard for thm to do. he kind of plunged in with both feet it took a little while bu

jack bogle had many highlights of his career. back in 1975 at the founding of van guard, he recognized the vast majority of active managers rarely meet benchmarks stock pickers were stars precisely he said because they were so rare he later said less than 3% outperform over long periods it was not just active managers didn't outperform, a large part of the problem was the high expenses, even into the early 1990s, it was not unusual for mutual funds to charge 1.5% a year or more, even 2% fo so-called active management. bogle concluded investors as a group must underperform the markets who are participating in this because the costs of fees constitute a direct deduction from the market's return a very important insight despite his love for indexing, bogle was never active management from the outset, vanguard had many actively managed funds and still does, vanguard health care run by investor ed owens even his actively managed funds were cheaper than the funds of his competitors. it was a double whammy the reason for vanguard's succ

finally, jack bogle, i am proud to say i knew jack and i am a jack bogle desiisciple. should understand why he is famous number one back in 1975 active managers rarely outperform second key insight, high fees are a drag on performance. over time when you charge fees on top of everything else, you can't outperform it's the fees that drag you down so he championed low cost funds for index funds as well as active funds he was not against active funds in the long run. he had several active funds at vanguard he wanted low costs for everyone and eventually attracted people who believed in indexing as he did and wanted lower cost for active funds as well my favorite quote for him, you want to be average and then win by virtue of your cause. jack bogle's impact is still evident today. this morning morningstar put out its annual report on fund flows for 2018 $207 billion went into passive those are index accounts that's jack bogle. $174 billion went out of active. ladies and gentlemen, jack bogle's legacy is very much with us i'm proud to say i too was a jack bogle disciple. >>

bogle lois felt -- bogle always felt it was healthy for a percentage of your assets to be in index fundsercentage gets too high, then you institutionalize mediocrity. david: tim, as you know well, it was not just sam sell who had concerns. it was jack bogle himself who wrote this is a great idea but it can go too far. what are the risks? jim: i cannot help but feel jack vogel behind me now. -- jack bogle behind me now. index a believer in funds. he would tell me not enough people index. people pay to much. they are getting ripped off. when he would look out, he would where he -- what could be an impediment? what would be an obstacle to indexing success? he was extrapolated -- extrapolating in the future, what could be public reaction and that is not to take away the power of indexing. he would argue with sam saying, your whole portfolio could be in index funds. he was a believer in that. individual managers that cannot perform. you have a 3% of finding that manager over the long run. do not find stocks that could drag return in the future because only 4% of them well. he would say, do no

it does good for both sides. >>> we will talk about jack bogle's legacy throughout the show jack bogle passing away at the age of 89. ♪ what's a gig of data? well, it's a whole day's worth of love songs. [ baby crying ] or, 300 minutes of baby videos. a gig goes a long way. that's why xfinity mobile lets you... ...pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay even less for data. or, if you need a lot, we have unlimited too. plus get $100 back when you buy an lg or moto phone. it's simple. easy. awesome. click, call or visit a store today. >>> china confirming high level trade talks with the u.s. will pick back up end of the month. not that much time left, right china says its vice premier is going to go to washington for two days of negotiations getting underway on january 30th that's the key guy that i think. he stayed for a little while a couple of weeks ago, and it's sort of, i guess -- he has a channel right to the president, so that -- >>> the u.s. is reportedly pursuing criminal charges against china's huawei for alleged theft of trade se

amongst all the tumults of cable news hysteria often times john bogle, jack bogle was really a voiceon, a voice of stability. neil: absolutely. >> you could say this was the sam walton for the investment world. neil, before jack bogle popularized no-load mutual fund, everyday investors had to pony up big bucks, big fees, five, 6%, what they called loads. jack bogle brought them down demon demonstrably to tenths of a percent. he opened up the exclusive boys club to america. neil: gary b., whether you like the idea someone would do the work you're saying, you don't need, just invest in this fund mimic fund to the performance of wider market. more to the record is this calming influence, through good times, bad times, he wouldn't get too excited. hit a boom, he wouldn't get too depressed. he would urge people not to look at 401(k) brokerage statements until they finally needed them well into retirement. the idea being, don't get hung up on this. what do you make of that? >> exactly. you know, his philosophy, neil, i think is appropriate for 99.9% of the people with money that want to ge

bogle got it down to $11.n, each year, every year for each $10,000 every $10,000, you're saving a lot of money, which means you're making a lot of money and not for one stock. as i said, for lots of stocks. don't look for the needle in the hay stack john would remind me. buy the hay stack. he not only democratized wall street but created a juggernaut that averages $5 trillion in assets a day. >> we know low turnover is important. i tried to recognize that ativan guard. there's no secret. everybody will tell you to go to index funds. i'm doing 50% stocks and 50% bonds. >> neil: not a bad strategy. >> and you're in the know. >> yeah. i go through with blinders on. we have a job. you look straight ahead and do the job. i built a company that is exempt from the things going on out there and talk about building a better industry. since i wrote my senior thesis at princeton a half a century ago. >> neil: here's the thing about telling average folks that he's just a guy behind the curtain charging you dough, the guy

it is not simple to just buy an index fund, the ajax bogle act -- be a jack bogle acolyte and be done. david: how would this square with the role of the shareholder having to direct the affairs of the corporation? jack did not see that as entirely passive. don: he felt as an index fund provider you had to be a long-term holder of the stock. the only way you could vote if you disagreed with what management was doing was by exercising actual votes or reaching out the management. you could not sell the stock. he said indexers are the ultimate -- have the ultimate long-term responsibility. he became a big advocate of that in his later years. david: dan wiener, cofounder and don and dan phillips -- phillips, thank you for being with us. jack bogle, vanguard founder dies at the age of 89. ♪ david: the u.s. government shutdown and the effect is having on various u.s. businesses. we will talk about beer today. joining us is damian brown, bronx brewery cofounder and president. one of the things we would not have expected with the government shutdown is affecting brewers of beer. damian: is hav

and that is jack bogle who i talked about in the annual report jack bogle has probably done more forcan investor than any man in the country. jack, would you stand up there he is. >> legends for more from the buffett archive, check it ou out @buffett.cnbc.com. since mr. bogle founded vanguard in 1974, passive funds ballooned. they are now at nearly $7 trillion in recent years, some investorsive including jack himself have worried the sheer size of etfs could cause a liquidity crisis hefold told melissa lee about his concerns three months ago. >> do you think that the market structure as it is right now could contribute to the sort of liquidity crunch the next time we have a volatility spike >> well, to be honest, there are areas of the exchange traded fund market in particular that could be very much subject to the same kind of pressures liquidity pressures you're talking about. when you get into the main part of the index fund market, the s&p 500, the total u.s. stock market it's not conceivable because they are the market. if there's a panic there, there be panic everywhere by def

500, are commonplace today, but they were unheard of in the 1970s, much less the early 1950s when bogle wrote his senior thesis about the concept at princeton. >> i sd mutualunds should be operated in the most efficient and economical w possible. i had a sentence in my thes thaid mutual funds can make no claim, superiorityhe over market averages. >> his thesis research laid the ground work for what become one of the most powerful investing movements of the late 20th centurud he con that active trading mutual fund managers failed as a group to outperform the relevant indexes, especially when you subtracts an expenses. >> anybody can do it for a year, and if you can do it for five years and a few can do it for ten years. but over a lifetime tabre's t a 3% chance a money manager can beat the market. >> afterprinceton he went to work for wellington managent for over two decade eventually becoming ceo. he was later terminated for what he called an unwise merger. so he started over, putting the indexing concepts from his thesis into practice at vanguard. >> investors suddenly found the playin

john bogle was 89 years old and he will be missed.in a fox business exclusive, nobel prize winning yale economics professor robert shiller, also co-creator of one of s&p's national home price index. i know you were a compatriot of jack bogle's. must be a tough day for you. >> i admired him. integrity is, he was living proof that integrity is a long run good strategy. it goes way back to his undergraduate days at princeton. he wrote an essay about mutual funds and are they serving the public. all through his life, he was working to make them a better service to the public. ultimately, it paid off. liz: he had integrity, he was that honest guy on wall street. i'm glad i wasn't overstating it. he was just one of the greatest. let me turn and shift to what's going on right now, and we want to pick your brain a bit first on the economic effects of the shutdown, partial shutdown of the government. the trump administration had to rejigger its initial estimates, and now it is pretty much double what they had thought would be the attack on the

learn on more how the bogle's folly became a history lesson. spank -- >> thank you, jill. track the orion span is working on the luxury space hotel, the aurora station and the guest can get 16 sunrises the date and float in the zero gravity. it will make its debut in 2021, one year earlier than first estimated at a cool $9.5 million. that will get you 12 days space. >> if you like sunshine it is the place to be, but you have to pay a lot of money for it. >>> before you grab your coffee, here how you could get starbucks delivered to your door. >>> here's a live look outside from the dublin camera as everyone heads back to work after the holiday yesterday. >>> gianna has your traffic update after the break. ♪ they say you should always listen to your heart. and where better to do that, than the island of ireland? after all, your heart is the best compass there is. so get out there and fill your heart with the stuff that keeps it beating. fill your heart with ireland. anne, thank you. >>> i am anne makovec at the live news desk. >>> the oscar nominations have been announced i

john bogle was 89. and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am viviana hurtado. this is bloomberg. tom: much more on mr. bogle through the day. the funniest john bogle story, i get an emergency phone call, pickup john bogle at the waldorf-astoria so i race down park avenue, i get to the waldorf, and he is right there. we walked back up and i realize walk,ocks in a 10 block john bogle had no idea there was traffic in new york. francine: you were walking? tom: we were walking up and mike two blocks into this -- like two blocks into this i realize, he is going to die. i played traffic cop to john bogle. he was oblivious to traffic. francine: legendary in the investing world for inventing a way for individuals to invest in a low check -- low fee market. futures, -10,n curve steepening over the past few days. oil going nowhere. i just have one screen today. pick it up with sterling rallying. francine: the pound has losses -- is trimming the loss

john bogle, the founder of vanguard group, has died.or investors. bogle created the first mutual fund tied to an index back in 1975. he is credited with democratizing financial markets as they cut the cost of investing. bogle retired as vanguard's chief executive back in 1996. john, better known as jack bogle, that's what we called him here, was 89 years old. well another headline this morning, the irs is waiving penalties for some taxpayers who didn't withhold enough money from their paychecks. they cited confusion surrounding the new tax law implemented at the end of 2017. after two days of confirmation hearings, democrats still aren't satisfied with william barr. democrats want more assurances that barr will be transparent with mueller's russia probe. >> this is a big report and the public needs to see it. i am hopeful that that report will be made public and my vote depends on that. cheryl: the committee has until tuesday to submit more questions before deciding if the entire senate will vote on his nomination. netflix is teasing a

john bogle, known to his friends as jack, was the founder of the vauard group and the creator of the first index mutual fund. bogle, who preached buying and hold investing and also wrote 13 books on the subject, launched the world's largest mutual fund organization, vanguard, in 1975 and later served as chairman and ceo until 1996. the group now manages over 5 trillion in assets. legendary investor john c. d bogld at the age of 89. >>> former nfl player took down a peeping tom who was lurk outside his daughter's bedroom. tony beckham, who played for the tennessee titans and the detroit lions, was getti his daughter ready for school when he spotted this man right here,-y r-old jeffrey cassidy, in the bushes. >> i maybe thought he was a maintenance guy or something trying pk something, but then he squatted down and i seen his hand gestures moving. and i go what are you doing? you know, i like startled him. and he tried to take off running. maybe i stopped him from doing so tthing more serious another kid. >> cassidy was charged with lewd lascivious behavior with a victim younger than 1

jack bogle, the founder of van garde group. he passed away last night at 89 years old. world's great long-term thinkers and investors, bogle revolutionized wall street by creating the world's first index mutual fund. he was a true pioneer, someone that we got to know professionally over the years and one of the most cherished guests here on

we lost a giant, jack bogle, the inventor of the index funds. and my question to you is in this day and age do you feel that the dow jones industrial average of just 30 stocks is it true and accurate indicator of market sentiment overall >> great question. i think it's a little atavistic. but when you talk about the market people talk about the dow. i have given in. i'm tired of saying to people you know what? dow doesn't matter what you should care about is the s&p. but you know what? erwin, life is too short i care about the dow all right, there we go okay next week is going to have you going crazy. forecast is key. even more than earnings results. and by the way, just so we're really clear this day is not only martin luther king birthday, but actually the birthday of my executive producer regina who got dressed up for the occasion. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnb

hey, tom in illinois, please, tom. >> caller: greg, in memory of jack bogle, god bless him.ir? i have black hills i have pfizer, i have procter & gamble i have at&t, and i have bank of montreal >> wow a quizzical portfolio, if i don't say so myself. all right. at&t yields 6% i think it's safe even at 30 i like it. one of the most conservative banks in the world they never got in trouble during the bad period black hills. pfizer, i prefer merck and procter & gamble, maybe goes to 95. consumer packaged goods, drug, utility, telco, and bank that works for me. but we're not done ♪ hallelujah we've got more to do let's go to jason in mississippi. jason? >> caller: boo-yah, cramer. >> holy cow, jason you sound awfully young. good to have you on the show, though. >> caller: that is my 8-year-old daughter she is a good fan. >> that's what i want. that's what i want they say the show is only for the cousin's best friend a brofther-in-law? no it's for the daughter. >> caller: all right so my holdings are altria. amazon, mastercard and disney for my daughter. >> long day. smart girl th

john bogle was 89. we'll be right back. place, the xfinity xfi gateway.strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. it's a revolution in sleep. the sleep number 360 smart bed is on sale now during the january savings event. it senses your movement, and automatically adjusts to keep you both comfortable. it even helps with this. so you wake up ready to put your pedal to the metal. save up to $500 on select sleep number 360 smart beds, now ranked #1 in customer satisfaction with mattresses by j.d. power. plus, free premium delivery and 36-month financing. ends monday. sleep number... proven quality sleep. charles: normally call this cp effect. stocks starting to spike. united states considering weighing china tariffs. go to gerri willis. >> at minute this hit, we were up five points and we are now up 221 points on the dow. big move there. why? u.s. officials debating ratche

it's being more bogle lysed by politicians, we can see a lot of business people very vocal. —— is beingning to think actually, we willjust reduce the probability so we've seen sterling rise a little. at the same time we've seen a weakness in europe, exchange rates are pulling and pushing. reduced prospects for growth across europe. that has actually improved the sterling exchange. we've been talking about the us government shutdown, how much ofan impact the us government shutdown, how much of an impact is that having on the us economy and what are people saying in the city? the analysis that we can look out from the past, 2013 was the last major shutdown, the weekly impact on gdp is appointed —— is about 0.1%, this has been going on for 34 days. that's 3-4 been going on for 34 days. that's 3—4 weeks if you say the christmas week isa 3—4 weeks if you say the christmas week is a pretty modest economic activity type of weeks. that can have quite a big impact unless it's sorted out quite soon stop on the first quarter gdp data, but be seen in the past is that hit comes back quite quickly on

so in the wise words of the late jack bogle, stay the course. that's one of the things we preach with our clients and have for almost 37 years now is have an appropria asset allocation, that is the right mix of stocks and bonds that's appropriate for the client and for their time horizon. but in service t asset allocation and that investment policy, which is our guiding light for how we invest, it's having high-qualitytf pio construction. that is a diversified portfolio of individualre stocks of companies, of different market caps and different ghic locations that put an investor in the position to not have to guess where the market is going over the short term orhat the winning asset class is going to be but rather having a high quality portfolio construction and ride the ups and down the in the market. >> jason, thk you very >> thank you. >>> a story in the news tt didn't have an impact on stocks today but one that wall street is watching osely. a former trump am caiscampaign and long-time political consultant, rauroger stone, was indicted by

. >>> we have been remembering the life and of jack bogle we spoke to bill miller and he told us jack created more wealth for more average americans than anyone else in investment history and likely the future as well he was a great fill an throe miss welcome to you what i love is being reminded of the fact that it was because it was so unsuccessful. >> it was. he was indexing before indexing was cool obviously in his first race that was $11 million frm now it is something close to half a trillion for the first ten years as he but foundover pointing out nowhere else any where in the industry imtaitated that index fund >> he was always looking for advice at that time. one tie tan was heard to say when he explained what he was trying to achieve here the titan said what this guy is trying to do is make all of the money on wall street at our expense. >> it may have been not true but certainly he was coming at the heart of the investment business there was a poster that said help stamp out index funds index funds are un-american. there was this idea that what he was doing was really coming

bogle, theel -- jack man who founded vanguard and virtually created the world of passive investing, passederday. a host of financial luminaries poured out their praise, among them, david solomon of goldman sachs, howard marks, sallie check, and -- kraw check, and charles schwab, saying that they stand on the shoulders of jack vogel. >> the financial industry has lost the legend and investors have lost probably their best advocate. what he did, i think, is hard to understand today, because we are so far removed from the 1970's and what investing was like. imagine making a portfolio of individual stocks almost at random, and here's a guy who comes along and says, own as many stocks as you can that represent a broad swath of the market and leave alone, pay as little as possible, never look at it again, and when you wake up in 50 years you will be rich. that sounded revolutionary in those days. i'm sure of it. ♪ >> let's take a look at the description page here on the uti crude and talk about the leverage, the contract, and the trading mechanics. >> the first thing to look at the leverage, abo

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i started in the business in the 1970s as well as jack bogle did.ack in the '70s, he created the vanguard index fund. if i remember back then, a lot of small investors, it was very expensive to buy individual stocks so what he did with his creation of the index fund, he helped small investors invest in the mark markets. that was a very big positive he was truly an innovator for the financial industry and allowing investors to invest in the markets i may not have agreed with him on active versus passive, but i valued and respected his contribution to investors and to the industry >> john, thank you for joining us this afternoon. good to see you, john calamos. >> thank you. >>> we have 45 minutes left until the close. we did see that pop about 30 minutes ago on the "wall street journal" headline that the trump administration was possibly considering easing the tariffs on china optimism faded since then. we're still high, but off the highs, the dow is up 0.3%. microsoft pledging $500 million for affordable housing in seattle. up next, we'll talk to the

john bogle, dead at age 89. ♪ >> greg: high matt, i am bret baier with dr.icole saphier, juan williams, jesse watters and dana perino. "the five." citing security concerns, nancy pelosi has asked donald trump to give his state of the union in writing. trump's response: canceling her trip to brussels right before takeoff. in the letter he said he was sorry to inform her that he's canceling the trip. no, no. he wasn't sorry. not at all. he basically stole her lunch money and then he ate her lunch. still, trump should accept her offer and send the address in writing, a sheet with just two words: bye-bye. then hold a giant event in the middle of america. after all, the people elected drum, not washington, d.c. nancy and the dems can take shelter under their desks and watch it on their ipad. trump can tell some jokes just so the press has reason to bring their hair. the media will cover it and highly flammable fact checks. it will be the first peoples state of the union. if the media doesn't show it, then we know it is personal and political. for it is historical

much i'm going to say stick with it it's worth it, and i just -- disturbing news here, i see jack bogle my absolute heroes passed away. he's a great man father of the index fund, and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade ♪ >>> how do you determine when a stock has gotten too cheap who's the arbiter? the companies, that's who. the companies that buy other businesses at substantial premiums to where their stocks have been trading. these acquirers are snapping up targets like mad bec

versus what it is today, it's about 90% lower, it's like silicon valley and moore's law, call it bogle'ser fees for people and by golly, he demonstrated time and again, if you stuck with an index fund in your retirement fund, you would do very well. david: that was investing for the common man. he gave the common man an in that all the wall street geniuses had before. again, he will be sorely missed. a wonderful, wonderful man. our hearts go out to his family. >>> meanwhile, it is day 26 in the partial government shutdown and the impact is being felt everywhere, from airports to potentially the upcoming super bowl. to jeff paul from the world's busiest airport with more details. jeff? reporter: yeah, david, wait times to get through security have really been fluctuating a lot today here at hartsfield-jackson international airport in atlanta. take a look behind me, you can see the lines here are pretty low right now, but just a couple days ago, some customers had to wait as long as 90 minutes to get through these very security lines. part of the reason we are seeing some of the delay, tsa

i have got to talk to you about the death of john bogle, a wonderful friend. see him in davos. active and passive investing, can there be a future given the way we see flows now? david: i think there is a future. did was to create the opportunity and democratize getting cheap beta to the market. where we are seeing flows is into alternative strategies into hedge funds, into alternative assets where you are getting alpha access to opportunities. they can coexist. what will be difficult to trackers who are charging for out for alpha generation but just tracking the market. tom: we are going to be talking about this later. geist was, the zeit bitcoin. what concerns you now in asset management? what is the thing everybody is certain about now? i mean i do think, in terms of the, i do not think anyone is certain about anything right now. brexit does have implications in the near term if it is a no deal brexit and over the medium-term if it is an orderly brexit. active asset, for managers, it is about identifying where you can genuinely add value and the strategies

. >> you know, leslie, of course interesting to be talking about this the week that jack bogle has diedrybody indexed, wouldn't it be easy to beat the index? he said maybe at some point, but along the way the indexes are displacing the less skilled managers so it becomes that much harder >> exactly a lot of people in the active equity world will say that this advent of index funds and etfs where there's less pricing decisions being made, where managers aren't doing that fundamental analysis, the more that index funds and etfs penetrate the market, the less of that price discovery mechanism we'll start to see, which makes it even more difficult for the active managers to do their job that's just a continual lament that doesn't seem to be reversing any time soon. >> leslie, thank you good story. >>> the world economic forum in davos getting under way next week xtwel have some big interviews ne, 'll talk about how the locals are capitalizing. bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be

. >> jack bogle you are the pie on inner this business, what has changed, since you started vanguard?al fund is totally different business it is now -- probably 70% cash flow sometimes one hundred percent cash flow going into index funds didn't exist when i started vanguard all those years ago, indexing up to i think 45% equity mutual fund assets to a revolution. >> he was 89 years old. aye we've got this for you right now a warning, sign for drivers, large survey finding that young drivers know emojis better than alert on car dash board millennials are 1/2 times more likely to identify popular emojis correctly. >> low tire pressure symbol this turns out older drivers didn't do much better half of young drivers couldn't identify the 05 oval didn't know what it meant one said if they keep driving will figure out what that symbol means. >> -- you know. i don't know what to is a i about that you know. >> oh god i am out of gas i am stuck! i'm sorry. >> not really driving anymore, a lot more than behind a car wheel for sure. >> i feel better now. >> i wouldn't be too concerned about this

looking to invest in the market as what jack bogle said, in the short term, a voting machine, in theong term, it is a weighing machine. growth, the growth of population, demographics. it is ultimately going to derive value from economic activity. that has been a long game and the only free lunch in long -- and long-term truth you can glean from markets. host: december did not spook you? guest: i got excited. i am no warren buffett. i have nothing on the order of his net worth. says he is greedy when other people are fearful. host: let's go to herald in california. caller: since the taxpayers pay for the public sector, is there a negative on their taxes being paid in? i don't know how to put this. i lost my concentration. sector, if it depletes, how will the public sector continue to succeed and move forward? i think i got that. thank you. guest: that is a great question. andneed a generous economy tax receipts coming in to sustain the public sector which has been in the headlines this week with the partial government shutdown. you see how many hundreds of thousands of people are depe