Vanguard’s Gerry O’Reilly and Jim Rowley

[00:01:40] – (First Question) – Patrick starts by talking about his recent interest in running and questions Gerry about his running escapades starting back in high school and how that led him to a job at Vanguard

[00:15:43] – Jim discusses how he arrived at Vanguard

[00:27:02] – A look at the key cultural components at Vanguard that has led to longevity among the employees

[00:10:44] – The conversation shifts to investing, with a look at what is the equilibrium between active and passive investing, and how Vanguard has handled the transition recently

[00:16:30] – Patrick asks them about using CRSP’s and why they use a third-party to benchmark themselves

[00:18:15] – What impact has proxy voting had on the active manager and how does Vanguard handle the active investors that will hold large portions of several companies

[00:20:18] – Patrick asks what skill sets would be important for new hires at Vanguard

[00:22:35] – A deep dive into risk and market structure, what dimensions of risk do they think about in their trades

[00:23:39] – What are some aspects of market structure that are subpar

[00:25:10] – The conversation shifts from passive investing to active and what strategies are being employed in making those trades

[00:27:29] – A look at the market efficiency debate and how Jim and Gerry view it

[00:30:12] – Patrick explores their feelings on high-frequency trading and whether these players are just taking advantage of market players

[00:31:56] – What do their quarterly re-balancing policy stand and what impact does that have on their daily trading activity

[00:34:14] – How do buybacks play into re-balancing

[00:36:52] – Gerry is questioned about the rise in factor investing

[00:39:45] – A look at how they invest, on a macro level

[00:40:32] – A look at the perfect portfolio balance and how it used to reflect what the total market asset classification looked at

[00:42:58] – Is the tax advantage of ETF’s significant enough for prospective investors?

[00:44:28] – In a scenario when there are net outflows of the market, Patrick wonders what strategy would be considered to produce the best tax efficiency

[00:46:03] – What are their favorite components of their jobs at Vanguard?

[00:47:51] – A look at their most memorable days at Vanguard

[00:51:16] – What was the kindest thing that anyone has ever done for Gerry and Jim in their careers?

[00:53:55] – What are the books that have shaped the way they thought, with extra points for books that might be less known

[00:56:28] – What are the areas that each of the guests is most interested in improving upon?