Investing legend Jack Bogle, founder of the Vanguard Group, just appeared on CNBC and talked about the topic of the day: Bill Gross’ departure from PIMCO.
“He a true legend,” Bogle said of Gross. “There aren’t too many people in my field who measure up to that test.”
“In an industry based on illusion, [Bill Gross] is the real thing,” Bogle said.
A report from CNBC’s David Faber on Friday morning said that Gross was set to be fired tomorrow due to “increasingly erratic behaviour.“
This is not something Bogle thinks makes much sense.
“I wouldn’t dare [fire Bill Gross], even if I had the power,” Bogle said.
And following Gross’ departure, many have wondered if PIMCO will face redemptions now that Gross is out.
“The idea of running out the door because [Bill Gross] is no longer there is completely anathema to me,” Bogle said.
For Bogle, if you’re going to take your money out of PIMCO, do it for reasons other that Gross leaving the firm. “It’s going to be hard for [PIMCO] to beat the bond market every year… those things happen to any manager at any time,” Bogle said.
Overall, the news that Gross is leaving the firm he founded in 1971 is pretty stunning, but Bogle doesn’t see this as anything close to end of the road for the 70-year-old Gross.
“Bill is a young man,” Bogle said.
Bogle turned 85 in May.