"After coming out of Wellington, I have only had one ideal in my life. To build a fund that actually considers the interests of investors, Carter... I know you are a good boy, but you can't change some things...

"

"You also have people to support. We face customers directly, and the commission can be as low as 10,000, but through underwriters, it is at least 70,000 to 90,000..."

Seeing Bogle and Carter talking about business, Jim and Julian wisely made room.

At this time, Carter felt a little strange, because this gap did not sound very big. The transaction commission only increased by 6 to 8 yuan for every 10,000 yuan, which...

"This number may not look big, but when placed in an index fund, this amount is not small! Because index funds are different from traditional funds, their share is a basket of stocks. For example, you are now a customer and want to subscribe for the first index investment

Shares in the trust fund..."

"We do not sell the shares directly to you, but after getting your investment money, we buy the stocks of the S&P 500 constituent stocks. Assuming that each share is 1 share, then we need to buy all the constituent stocks

One share, after being packaged, is converted into 1 fund share. Similarly, when redeeming, we return a package of stocks instead of cash!”

"If you want to cash out, you still need to trade and sell these stocks! Therefore, when investing in index funds, the frequency of transactions will be very high! The difference in commissions will also expand exponentially. Every time the commission is reduced by 1 dollar, the actual savings will be

The cost is probably three dollars or four dollars... This can buy one more share of a small company's stock to form a new share! The larger the investment and the larger the scale, the more obvious the impact of the difference in commission ratio will be!"

Pulling Carter to sit on a sofa in the living room, Bogle patiently explained:

"I am very grateful that you can invite me at this time, when I am at my lowest. But please understand that it is not that I am unwilling to support you. It is just that allowing banks to underwrite securities is just a rumor and an appeal. And

There is no written law, so this may not be feasible."

"Secondly, low rates and low-cost operation are the foundation of Pioneer. I set this tone when the company was founded. Even though times are tough now, this fundamental thing is difficult to change.

Once it’s changed, is it still the same?”

"Moreover, I firmly believe that in the long run, Pioneer's idea is correct! Our management fees and custody rates are much lower than those of our peers. We do not need to pay commissions to brokers and underwriters, which means,

With the same profit scale, the actual returns of our clients who invest in us will be much higher than those of other funds."

"Let me tell you, I remember that you have shares in Tiger. You should know that their management fee starts at 2%, and this is a discount for large customers. And a part of the profits will be taken away.

Ross’s quantum is even more exaggerated..."

"And what about us? The comprehensive rate is only %, and the difference is at least ten times more! It is true that under normal circumstances, index funds and the First Index Investment Trust cannot achieve their exaggerated 60%.

More than 70, or even more than 100, an exaggerated profit that has doubled. But if you look at it from a long-term perspective..."

"As long as you believe that the U.S. economy can grow, then it is guaranteed to make money. Assuming that the annual economic growth rate is 11%, and our interest rate is about 0.2%, the investor's ten-year comprehensive income will be 179%. Thirty-year comprehensive income will be 179%.

Year is 2069%! Compared with other open-end mutual funds, they may have income as great as ours in a certain period.

, but the possibility of them losing money will also be higher. Assuming that they can also achieve a long-term comprehensive rate of return of 11%, then in terms of fee rates, even if they only increase the fee rate by 0.4% or 0.6%, what will happen thirty years later?

The total return rate is only 1846%, not to mention that even for mutual funds, management fees are usually above 2%..."

"Hmm...I think I understand."

Carter nodded thoughtfully.

Originally, Carter's plan was just like that of Xiao Lizi, who sells junk stocks in the pink single market in "The Wolf of Wall Street". No matter whether the fund is junk or not, as long as it has low cost and low investment threshold, it is a good fund!

As an underwriter, I am only selling the goods, not holding them myself!

Intermediary management fees, distribution fees, etc., as long as someone buys it! No matter whether you lose money or not, you will make money!

But after listening to Bogle's more detailed introduction, Carter found that the threshold for playing with this fund seemed to be quite high!

The first is share investment, which requires a basket of stocks. In other words, the starting investment amount is not low! The so-called low cost is just the operating cost, and the non-investment threshold is also even lower!

Of course, if it's just one or two such investments, it's not too high...

But for such a conservative fund, Bogle’s business philosophy and marketing gimmick is low operating costs. If you join yourself as a middleman, will its costs still be low? If not, why would others invest in it instead of

How about investing in some more active funds?!

Unless, I also lower the rates! And the commission ratio!

But if you do that, how can you guarantee your profits?

"Thank you for your advice, Mr. Bogle! Indeed, it is meaningless to say too much now. Everything has to wait until the dust settles. However, I agree with your point of view! In the long term, the U.S. economy is

Be good! We can all have a bright future!"

After bidding farewell to John Bogle, Carter continued his social butterfly behavior.

In addition to the guests he invited, such as Akio Toyoda and some Japanese businessmen he brought; such as Mr. Griffin, a Florida building materials businessman who was dragged to New York by Carter and planned to inspect the situation in New Haven, Zhu

Leanne also brought many people to Carter, such as old acquaintances, Mr. Mackenzie, etc...

As he grows older, Carter understands more and more why businessmen are so easy to stick together. Because the more people you know, the better your business will be...

But when the business scale reaches a certain level, especially when everyone in your circle becomes giants, some thoughts will change...

The long-term future will not be discussed for the time being.

As the host of this banquet, Carter naturally made his final appearance.

When the door of the living room slowly closed, Carter, who was standing in the living room, looked at the magnificent banquet hall in front of him, and also looked at the ugly and glamorous people in the hall...

The feeling of success that I didn’t get at Douglas’s Christmas banquet was all restored now!

The purpose of holding this banquet is also very simple. It is purely to meet old friends and increase the sense of presence. The other utilitarianism may be that it may be involved in the construction of New Haven in the future...

Most of the guests attending the meeting are businessmen from the north. Who knows if there will be opportunities for cooperation in the future?

Right?

This kind of banquet with little utilitarianism can be said to be as simple as a white lotus in the vanity fair of New York.

In this relaxed atmosphere, guests and hosts enjoy a dinner...

1 second remember network:.
Chapter completed!