YouSaid · the spoken record

William McNabb

lines on the record: 112
first: 2016-10-21
most recent: 2016-10-21
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Bill is what I prefer. Okay, it's technically Frederick William III, and my mother insisted that I be built since my father was Fred.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Comes with challenges, with a lot of challenges. And I think that's really, you know, if I could go back in time and anticipate that a little better, I think I would have made smarter decisions in terms of helping us as a firm think through some of those things. I think we've done okay. But those two phenomena, the acceleration of technology and globalization, again, probably very interrelated. They really are defining our era in so many ways. And I think they're going to define the next 10 years too.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you know, not having as good an appreciation about that. And then I think it's probably related, but the globalization that's occurred, especially the last decade. It's spectacular, but also, you know, it's”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“30 years ago. Yeah. I think the speed with which technology is evolving is much, and here for a science fiction guy to admit this, it's really hard, but I didn't see it all coming as fast as it came. And I think it's because it's not linear. I don't think humans are wired to think exponentially.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“My first foray into finance, I wasn't as connected from a mission standpoint. And it was finding Vanguard that really reinforced how important that is. I was just so much happier about the work.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it's a really interesting time for that. And first, I'd always tell them whatever sector they're going into the economy, but in particular in financial services, find a place where your values match up. So, you know, really probe a lot around the values of a firm. And you got to go to a place that you're comfortable with and where your values really match up. I think very related is have a passion for it too. Don't do anything just for the paycheck. And sometimes, I mean, you know what it's like coming out of school, you're in debt and you're tempted to just do whatever to meet those obligations. But I think passion is really important. You know, when I first came out of school, I did have a passion around education. So, you know, the first couple of years for me, you know, I got to fulfill that.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Miles a day. But you know, to your original question, I find that, and this was a lesson I learned from Jack Brennan, the discipline of staying fit has helped me immeasurably career-wise. You don't get sick as often. Your stamina is great. You know, when you go through crises, You know, long days just sort of bounce off you And so to me, it's become very self-reinforcing of kind of basic leadership principles, you know, something that you want to emulate to other people do it.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So again, long rides on the weekend, and we have a gym on campus. I'll do a spinning class a couple times a week. So there's”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's pretty impressive. So I can't fake it through that anymore. So I've got to keep it. What do you do to prep for that?”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“However you want to do it, you tell the organization you will raise a minimum of, I think the minimum is probably four or five thousand dollars now. And you get sponsors, friends. My wife and I tend to, you know, it's cancer research pretty important to us. So we tend to do it ourselves. But everybody has their own approach. And it makes you train. It's 200 miles in two days.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Benefit Dana Farber and Cancer Research, and in particular, a lot of emphasis on pediatric cancer. And it's a really cool event. And I think this past year, we probably had 10 or 12 of us go up and do it.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“They do. And what we do is we all try to get together and race this race in Boston periodically. And then the other thing I do with actually a number of my Vanguard colleagues is I bicycle. We typically do one or two charity events in the summer to raise money for cancer. There's one in Massachusetts that's, again, you'd love it from just an economic standpoint $40 million raised in one weekend.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I'm going to row with two events, actually, which I may regret later. I think they may need oxygen when I'm done, but I'm going to row with three of my teammates. And the first time we got in a boat together was 41 years ago.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Know it's hard with my schedule, so I'll go out on the weekends. I have a shell, a single, and I will occasionally jump into a teamboat. I'm going to actually race this coming weekend in Boston. At the head of the Charles in a master's event. So they age handicap it, which in my case is really necessary.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Take the teaching job in Philadelphia so I could continue rowing. It brought me back to Philadelphia, this coach I mentioned as a mentor gave me the best career advice I've ever gotten. And in a sense, everything good that's happened since I can trace back to that decision to start rowing. So I'm pretty passionate about the sport.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I have a background in endurance sports, in particular in rowing. I took up rowing in college I could argue that it was taking up rowing that's led to everything. Really? It led me to”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you know, what's so interesting to me is these guys had a vision and they didn't let anything get in their way. And they just kept pursuing it. And the discipline and the passion, you know, it's everything I love. You know, the American dream writ large.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And it's basically a follow up to a book he did a couple years ago called Bunker Hill. And it's the second year of the Revolutionary War. And it's really, he focuses on Washington and Benedict Arnold. You get a really deeper appreciation for what led to Benedict Arnold's treason. And it's a story I didn't know, so it was really fascinating.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Science fiction writers. Yeah, I'm now about to start a new book that's about the X Prize and the first group to win the X Prize. Was this space?”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I like to say I misspent my youth and my adulthood reading a lot of science fiction. But for me, it's actually very stimulating because things like, and you know the cyberspace, virtual reality.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you know, I think Gibson, neuromancer is one of my top books. Mona Lisa Overdrive, one of my favorite books. So, I like those guys. You know, to me.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I read this summer while I was on vacation, and it was fantastic. So that's kind of how I amuse myself in the fiction world.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's really a good read. You'd enjoy it, especially given what you've done. You know, on the fiction side, so I tend to be accused of being very eclectic. I have a huge science fiction collection. Me too.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's, but it's, you know, again, you captured a lot. There's another book that I think does a, it's less extensive than yours, but gives everybody everything they need to know about that era. It's the Lost Bank by Kirsten Grind, Wall Street. It's about Washington Mutual And it's a fantastic insight into what corporate culture, how corporate culture can go awry. LOS.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I think I don't have the stat right off the top of my head, but I'm going to guess it's at least 25% of the company's spend more than 20. And that belief in what we do is really palpable. And then, you know, you make it, you pay well, you make it a really good environment. And, you know, we try to treat people really well. This was a Jack Bogle. No problem, you know, in a sense differentiating by how people's contributions are to the firm. But from a behavior standpoint, Jack never cared what level you were. You treated everybody with respect. And I remember learning that like my first three days there, just watching what was going on. And that really, again, for a lot of us, that's what gets us up in the morning.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Thinking about the responsibility that's been entrusted with us. And I think that's why the people are there. You look at our senior team, people, the tenure of our organization is incredible. We have half the company. Has been in Vanguard more than 10 years.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“All. There's a question I get asked a lot out there. People say, what's it like to have $3.5 trillion or $4 trillion? I always like, I have no idea. It's not my money. We go to bed every night actually.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I had a there's a funny story. Somebody, a reporter came to my office a couple weeks after I'd become CEO and she sort of looked around and she said, this isn't really what I expected. And she had been somewhere else where I think they'd spent a million dollars on art or whatever. And she said, well, how much did that print cost? And that? And I said, well, it's a print. It was 15 bucks. And then we got it reframed. And a lot of the art was actually went all the way back to Jack Bogle and Jack Brennan days. It was just stuff we had.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It doesn't. And we want people who are mission-based. And the thing, and you've been to the campus, you felt it. I mean, Everybody there is there because they really believe in the mission of the firm. You don't feel”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So it gets to the question how much is enough, right? So, you know, at the end of the day, I think the kind of people we've been able to attract, look, we want people to make a good living. We want people to be able to take care of their families and, you know, Support whatever. But it doesn't have to be a”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“The only ones who employ this strategy as extensively as we do, and really all of our active equity with a couple of very And it's been a really good way to approach Active. And we find people who are aligned with us in terms of low cost and long-term view and so forth. You know, in terms of the broader question, though, how do we retain talent? I'd say there are a couple things. One, we do compensate people well. I mean, in our own firm, our fixed income teams, our index teams, our client service people, you know, we pay very strict attention to what's going on in the industry.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you know, interesting on the active management side, some of those folks I referenced, they don't actually work for us. Outside managers. They're outside managers. And so they work for Wellington or for PrimeCap or any of the other firms around the world. Bailey Gifford in Scotland.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So about three years ago now. And the thing that was so impressive about Ed and John was their knowledge of their companies was deep. But even his active managers, they were very much into long term value creation. So you look at their portfolio turnover and it was really low compared to other active funds. And they actually took pretty concentrated bets. And, you know, I've come to believe that if an active manager is going to add value, it's probably going to be by being very different. So each of them would have 40 to 50 percent of their portfolio and their top 10 names. And coupled with an index as a base, that was actually a pretty good way to invest.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Thing about John that was so powerful, and your evidence-based investing makes me think about this, John knew the companies better than the companies knew themselves. And I can remember sitting in sessions where he would be going through the details of what was happening, a Fortune 50 company and sitting across from the management teams. And they had no idea what he was talking about. And he was so much more in depth. And then there was another fellow at Wellington who sort of flew the public radar. But when you look at his track record, Ed Owens, who ran our healthcare fund. and he's since handed it over to his successor who's done a phenomenal job, Gene Hines. But Ed and his team, that healthcare fund for 30 years, when Ed retired, no fund in the industry had a better track record. Really?”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I certainly have to give Bert a lot of credit. And then this may surprise you given how important I think indexing is, but there have been a couple of active managers who I had exposure to fairly early on. And I just liked the way they think. And I actually think it's very compatible with the way I describe the power of indexing and the great John Neff. Sure, who ran Windsor Fund for 30 years and one of the best track records ever for an active manager.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Had a really great sort of duo in that we had Jack as chairman and CEO and key thinker on all this. We also had Bert Malkiel, great Princeton economist on our board. And I got some pretty early exposure to the board. And Bert's, again, a random walk down Wall Street, one of the greatest treatises ever written.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you know, it's interesting. You know, obviously, I have to say Jack Bogle is just his analytic approach and the way he tried to simplify everything was really powerful.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“His name is Jim Barker, and we still talk a lot. And I went to him when I was interviewing at Vanguard. And Jim lives in Roxboro, sort of in a row house in Philly. And we got a couple cheesesteaks at what I consider to be the best cheese steak place in all Philadelphia, Delessandros, and six-pack of beer. And talk about life. And he was the one who really said, you got to go someplace where your values and your passion match up with what the organization's trying to do. And he said, you know, you got choice. He said, that's what it should come down to. And it was sort of the final thing I needed to, you know, like, I got to do this because, you know, Vanguard, there was something special about it 30 years ago”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Legendary firm and really change the nature of how people provided services in the institutional space. And then I have a couple of unconventional mentors. I have an individual, he's 86 now. He's like a second father to me. He was my rowing coach when I got out of college. And while I was teaching, he and I were coaches together, but he was also my coach because I was continuing to compete. And I actually owe him a lot.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And Charlie gave me really, really good advice when I took over running the 401k business. And he kept focusing in on, don't worry about growth, worry about the quality of what you're doing for your existing clientele, and growth will take care of itself. And, you know, of course, Greenwich did sort of an assessment of who was the highest quality provider. And I never forget coming when he came in one day and he said, hey, congratulations you've won first time And he goes, Now you're the hunted. So, what are you going to do? And it just opens up.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you know, Jack certainly, before I worked directly for him, was somebody I would go to for just advice around career, family, how to think about business problems. Jack was one of the great strategic thinkers, I think, of the entire industry during his time. And he was just a really good sounding board for a lot of things. So he clearly was a mentor. We also I became pretty friendly with Charlie Ellis before he came on our board. Charlie was running Greenwich Research. You know, I really count Charlie as somebody that I learned a ton from. His book is arguably one of the two or three greatest, his first book, you know. Winning the lose-losing, one of the two or three greatest things ever written about investing.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I had no idea when they were interviewing me. Guaranteed investment contracts were a fixed income instrument issued by insurance companies As an investment option in 401k plans. And we were just getting in the 401k business. And we wanted to take a little bit more sophisticated approach. I think we had a couple hundred million dollars in the program at the time. I'm pretty sure I got hired because Jack Brennan was intrigued by the credit background I had. And he wasn't convinced that we had analyzed the insurance industry properly for the GICs we were buying. And so I think that had something to do with it. I'm not sure why else because nothing in my background really pointed toward that, but it turned out, again, you'll hear me use the.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Totally. In coaching three sports, it was 1979. It was pretty deep recession. Unemployment was high. I was happy to have a job. And my parents were happy to have me off the dole, and it worked out. And I loved it. It was a great couple years. And then I went back to business school. My first job out of business school was at what's now J.P. Morgan Chase. It was the Chase part. And I did a lot of different things. But the last thing I did was really work on a lot of highly leveraged transactions, actually undoing some for the most part.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and I think you're seeing at least, I don't know if it's a new breed, but you're starting to see some serious leaders in that space. Say, wait a minute, we've got to re-examine what's been going on. So I'll be the optimist and say that people are going to start to get their hands around it, but it will highlight that there's going to be some real gaps here in terms of what's been promised and what's actually funded and how that plays out politically. I'll leave it to you to speculate on.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And then for the liquid portion, you're going to see a real emphasis on cost, I think. And so you'll see more passive investing overall. My guess is that continues. I think the big wild card, and it is the most interesting part of the equation is everybody is looking at the expected returns and the equity in bond market. And they're looking at their own assumptions for their plans. And there's a disconnect. You'll see some very prominent public plans that have seven and a half, 8% expected returns. I don't know where that's going to come from.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I think the shift is already underway in some of the leading plans are actually moving pretty quickly in this regard. And I think what you'll end up seeing is a little bit more bifurcation in what they do. So they will keep some non-traditional, but it'll be more in the illiquid space where, again, in theory, It's less about the manager, although, as you and I know, maybe it's more about the manager than anybody wants to admit. But you should get paid more in some of those spaces”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Some of the big pension funds, especially in the states and so forth, we don't have as much access there. Interesting though, you are starting to see some of the messages that we've been promoting actually adopted. I don't know if they got it from us or if they're coming up with it independently, but you're starting to hear some of the same things. Hey, maybe we're paying too much for investment management management overall, and we need to think about a different approach.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So there's no question that there's lots of outside influences, whether it's the consultant community or other people circling around. And complexity usually is the friend, the more complex the relationship is, the more complex they want the solution to be. And again, we found simple works better in most cases. So we just go out and we try to tell the story. And sometimes it doesn't work right away. And you just keep sort of knocking at the door and you just keep telling the story. In the 401k space, it's worked really well. In the endowments and foundations, we're finding in the sort of up to mid several hundred million dollars were actually the story is really resonating there.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Automatically, you don't have to think about it. So that's why I like the target date. And, you know, I've made the point to, you know, thousands of investors at this point, I don't care what your income level is. In a 401k plan, whether you're making $25,000 a year or $250,000 a year, a target date fund is a great solution for you. If you want to put more time and energy into it and you love this stuff, great. You can construct a portfolio. I don't think it'll do any better, but maybe it's something that you get a lot of satisfaction out of. But I think this default thing is really powerful. And, you know, we're seeing almost every new investor who comes into the system just stay with the default.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I think the target date is the easiest one. I think any well-diversified balanced option will suffice. But the beauty about the target date fund is you can give, you know, you're a lot younger than I am. Not that much you can get the equity exposure you need versus what I might need.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source