We had Vanguard’s incoming CEO Tim Buckley do a Q&A at the Evidence Based Investing conference earlier this month in NYC. On January 1, 2018, Buckley takes over as Vanguard Group’s fourth chief executive.
Here is Joe DiStefano of the Philadelphia Enquirer, with his highlights of Buckley’s Q&A:
“The company is red-hot, adding $1 billion a day from customers seeking low-fee index funds and other products. Assets could top $5 trillion next year. Buckley made an early public appearance as boss-to-be in New York, addressing Ritholtz Asset Management’s Nov. 2 Evidence-Based Investing Conference in remarks guided by firm head Barry Ritholtz, who manages about $600 million, including Vanguard exchange-traded funds.
Following are some highlights of Buckley’s comments.
What keeps him up nights? “Cybersecurity … I was driving my kids to soccer practice when they heard the announcement. My 9-year-old didn’t know what a CEO was. My 13-year-old said, ‘Dad, congratulations, that’s pretty awesome! But how do you sleep? You have $4.7 trillion. You’ve got millions of shareholders. What if Vanguard were hacked?’ And then he gets out of the car and leaves Dad alone. (Laughter.) It’s front of mind all the time.”
On “social” investing: “For how many of you here today is this front of mind? Just a smattering. … Traditionally, social investing has been exclusionary. No big oil. No munitions companies. You are taking the social morals of some and imposing it on the people. You can never get them to agree. … Should we be making a positive selection” of companies improving the environment?
On Vanguard ownership of more than 5 percent of U.S. stocks: “These companies realize we’re permanent shareholders. We’re going to be around even longer than management. … Once they realize we vote the shares, it’s surprising how many people find their way to Malvern to talk to us.”
On running Vanguard, which is owned by its funds: “You have to be willing not to be a billionaire.”
Go read the full article, it’s great stuff . . .
New CEO Buckley, on running Vanguard: ‘You have to be willing not to be a billionaire’
Joseph N. DiStefano
Philadelphia Enquirer, November 9, 2017