John “Jack” Bogle (May 8, 1929 – January 16, 2019) (1)(2) is the founder of the Vanguard Group and was a role model for many index investors.
Early life
John “Jack” Bogle was born on May 8, 1929, in Montclair, New Jersey (US).
In his younger years, John’s family already faced some adversity. The family fortune was ruined by the “Great Depression” in the early 1930s. During his youth, John delivered newspapers and worked in an ice cream parlor to contribute to the dire family finances.
Education
After attending high school at Manasquan High School and graduating cum laude from Blair Academy, a private boarding school, he was admitted to Princeton University where he studied “Economics and Investment.” In 1951, John graduated magna cum laude from Princeton University.
Career
In 1951, John was hired by Wellington, a private investment management firm. In 1955, he was promoted to assistant manager, analyzed the company’s investment department and made proposals to broaden horizons by creating new investment funds. John stood at the basis of a merger in 1966 between Wellington and a Boston-based investment consulting firm. In 1974, a business disagreement marked the end of his career at Wellington.
He didn’t stop there and founded The Vanguard Group in 1975, where he created the first index mutual fund (the current “Vanguard 500 Index Fund” based on the S&P500 index) in 1976.
Vanguard is a fund management company with a different approach from its competitors. The investors (customers) in the mutual funds are also co-owners of Vanguard, following the philosophy of a cooperative society.
John was diagnosed with heart problems in the 1990s, and this led to his resignation as CEO of Vanguard in 1996.
He passed away on January 16, 2019, at the age of 89.
Don’t go looking for a needle in a haystack, just buy the haystack.
John Bogle
Passive investing
John Bogle’s signature is passive investing, one of Bogle’s most famous statements is “Don’t go looking for a needle in a haystack, just buy the haystack.”
An index fund or ETF (Exchange Traded Fund) is an investment fund which is (usually) based on an index. The provider of an ETF, such as Vanguard, buys and sells shares/bonds based on their weight in the index. The big advantage is the management cost. The manager can keep these costs very low because there is almost no manual work involved, unlike actively managed funds.
Inspiration
John has also written several inspiring books. Below are some recommended ones :
- Common Sense on Mutual Funds
- The Little Book of Common Sense Investing
- John Bogle on Investing: The First 50 Years
- Enough
- Stay the Course
Which books of John Bogle have you read? Let us know in the comments!
John Bogle – Common sense on mutual funds John Bogle – The little book of common sense investing John Bogle on Investing-The-First 50 Years John Bogle – Enough John Bogle – Stay the course
This info is for informational, educational and entertainment purposes only, and does not constitute financial, accounting, or legal advice. Please do your own research (disclaimer).
Sources :
(1) Wikipedia contributors. (2021, June 9). John C. Bogle. Wikipedia. https://en.wikipedia.org/wiki/John_C._Bogle
(2) John Bogle – Bogleheads. (n.d.). Bogleheads. Geraadpleegd op 4 juli 2021, van https://www.bogleheads.org/wiki/John_Bogle