Recommended Reading by Warren Buffet in his March 2013 Letterto ShareholdersHow speculation has come to dominate investment--ahard-hitting look from the creator of the first index fund.Over the course of his sixty-year career in the mutual fundindustry, Vanguard Group founder John C. Bogle has witnessed amassive shift in the culture of the financial sector. The prudent,value-adding culture of long-term investment has been crowded outby an aggressive, value-destroying culture of short-termspeculation. Mr. Bogle has not been merely an eye-witness to thesechanges, but one of the financial sector's most activeparticipants. In The Clash of the Cultures, he urges a return tothe common sense principles of long-term investing.Provocative and refreshingly candid, this book discusses Mr.Bogle's views on the changing culture in the mutual fund industry,how speculation has invaded our national retirement system, thefailure of our institutional money managers to effectivelyparticipate in corporate governance, and the need for a federalstandard of fiduciary duty.Mr. Bogle recounts the history of the index mutual fund, how hecreated it, and how exchange-traded index funds have altered itsoriginal concept of long-term investing. He also presents afirst-hand history of Wellington Fund, a real-world case study onthe success of investment and the failure of speculation. The bookconcludes with ten simple rules that will help investors meet theirfinancial goals. Here, he presents a common sense strategy that"may not be the best strategy ever devised. But the number ofstrategies that are worse is infinite."The Clash of the Cultures: Investment vs. Speculationcompletes the trilogy of best-selling books, beginning withBogle on Investing: The First 50 Years (2001) and Don'tCount on It! (2011)

Foreword By Arthur Levitt ixAcknowledgments xiiiAbout This Book xvChapter 1 The Clash of the Cultures 1Chapter 2 The Double-Agency Society and the Happy Conspiracy 29Chapter 3 The Silence of the Funds: Why Mutual Funds Must Speak Out on the Governance of Our Nation's Corporations 65Chapter 4 The "Mutual" Fund Culture--Stewardship Gives Way to Salesmanship 103Chapter 5 Are Fund Managers True Fiduciaries?: The "Stewardship Quotient" 139Chapter 6 The Index Fund: The Rise of the Fortress of Long-Term Investing and Its Challenge from Short-Term Speculation 167Chapter 7 America's Retirement System: Too Much Speculation, Too Little Investment 213Chapter 8 The Rise, the Fall, and the Renaissance of Wellington Fund: A Case Study--Investment Wins, Speculation Loses 251Chapter 9 Ten Simple Rules for Investors and a Warning for Speculators 297Appendix I: Performance Ranking of Major Mutual Fund Managers-March 2012 323Appendix II: Annual Performance of Common Stock Funds versus S&P 500, 1945-1975 325Appendix III: Growth in Index Funds--Number and Assets, 1976-2012 327Appendix IV: Wellington Fund Record, 1929-2012 329Appendix V: Wellington Fund Equity Ratio and Risk Exposure (Beta), 1929-2012 333Appendix VI: Wellington Fund Performance versus Average Balanced Fund, 1929-2012 335Appendix VII: Wellington Fund Expense Ratios, 1966-2011 337Index 339