Glyn Holton interviews Michael Yogg, author of the new book Passion for Reality: The Extraordinary Life of the Investing Pioneer Paul Cabot (Columbia Business School Publishing). Its about Paul Cabot, a pioneer of the mutual fund industry. In 1920s Boston, Cabot cofounded State Street Investment Corporation, one of the first open-ended mutual funds.
Fundamental research and actually visiting the companies he invested in, what a concept. Those first mutual funds may have some lessons for today’s. Interesting to learn of the practices of early funds and fiduciary practices. From GlynHolton.com, a blog about risk.
Writing as the author of Passion for Reality, I’d like readers to know why Paul Cabot is relevant today: putting clients first; rigorous fundamental research; passion for performance; absolute honesty and transparency; outraged by corruption; interest in the welfare of the financial system and the country.
Thanks for the comment Michael. I thought it was a very interesting interview. We need a few more people like Paul Cabot around today. It is amazing what a few people can accomplish.
John Bogle contributed a foreword to the book, which is outstanding …. an insider’s view of the history of mutual funds. He actually has some mild criticisms of Cabot’s ethics … Cabot had taken the moral high ground, arguing that mutual fund trustees worked for investors, a role they couldn’t “sell” to someone else. That went by the wayside when Cabot and his partners sold State Street to MetLife. Cabot was human, I suppose …
Yogg’s book — and Bogle’s foreword especially — highlight with history some serious conflicts of interest in today’s mutual funds.