Jack Bogle bashes ‘FANG’ investing, says trading mentality ‘loser’s game’

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Shannon Stapleton | Reuters

Jack Bogle, founder and retired CEO of The Vanguard Group.

Vanguard founder and former CEO Jack Bogle is not a believer in trading ‘FANG’ stocks.

When asked about Intercontinental Exchange launching a FANG+ index futures contract for traders on Wednesday, Bogle blasted the idea.

The product enables investors to trade an index that tracks the performance of Facebook, Apple, Amazon, Netflix, and Google-parent Alphabet, along with Alibaba, Baidu, Nvidia, Tesla and Twitter.

“If you want to do such a crazy thing, it certainly makes it easy to do. … I have no doubt it’s a liability,” Bogle said on CNBC’s “Power Lunch” Tuesday. “I think the odds are very bad. It appeals to the trading instincts in investors. … If you like gambling, if you like casinos, these things are really, really, really good.”

Instead he recommended investors focus on the long term with a multidecade time horizon by buying index funds that minimize trading transaction costs.

“Anything that gets investors into trading is a negative,” he said. “Trading is a loser’s game. Trading is short term speculation.”

Bogle founded Vanguard Group in 1975. The firm is widely regarded as the leader of passive index investing. It has approximately $4.7 trillion in assets under management, according to its president.



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