John Bogle


John Bogle

John Clifton "Jack" Bogle (born May 8, 1929) is the founder and retired CEO of The Vanguard Group. He is known for his 1999 book Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor, which became a bestseller and is considered a classic.[1][2]

Contents

Early life and education

Bogle was born in in Verona, New Jersey. His family was affected by The Great Depression. He attended Blair Academy on a full scholarship, earned his undergraduate degree from Princeton University in 1951, and attended evening and weekend classes at the University of Pennsylvania.

Career

Upon graduation he went to work for Walter L. Morgan at Wellington Management Company.[3] After successfully climbing through the ranks, he was named chairman of Wellington but was later fired for an "extremely unwise" merger that he approved, a poor decision that he considers his biggest mistake, stating "The great thing about that mistake, which was shameful and inexcusable and a reflection of immaturity and confidence beyond what the facts justified, was that I learned a lot".[4]

Bogle then founded The Vanguard Group in 1974. Under his leadership, the company grew to be the second largest mutual fund company in the world. Influenced by the works of Eugene Fama, Burton Malkiel, and Paul Samuelson, Mr. Bogle founded the Vanguard 500 Index Fund in 1975 as the first index mutual fund available to the general public.[5] He continues to be active in The Vanguard Group.

Bogle is a member of the board of trustees at Blair Academy. He is also an advisory board member of the Millstein Center for Corporate Governance and Performance at the Yale School of Management. Bogle received an honorary Doctor of Laws degree from Princeton University in 2005.

Bogle also currently serves on the Board of Trustees of the National Constitution Center in Philadelphia, a museum dedicated to the U.S. Constitution. He had previously served as Chairman of the Board from 1999 through 2007. He was named Chairman Emeritus in January 2007, when President George H.W. Bush was named Chairman.

Investment strategy

Bogle is famous for his insistence, in numerous media appearances and in writing, on the superiority of index funds over traditional actively-managed mutual funds. He believes that it is folly to attempt to pick actively managed mutual funds and expect their performance to beat a well-run index fund over a long period of time.

Bogle argues for an approach to investing defined by simplicity and common sense. Below are his eight basic rules for investors:[6]

  • Select low-cost index funds
  • Consider carefully the added costs of advice
  • Do not overrate past fund performance
  • Use past performance to determine consistency and risk
  • Beware of stars (as in, star mutual fund managers)
  • Beware of asset size
  • Don't own too many funds
  • Buy your fund portfolio - and hold it

Awards and distinctions

  • Named one of the investment industry's four "Giants of the 20th Century" by Fortune magazine in 1999.
  • Awarded the Woodrow Wilson Award from Princeton University for "distinguished achievement in the Nation's service" (1999).
  • Named one of the "world's 100 most powerful and influential people" by TIME magazine in 2004.[7]
  • Institutional Investor's Lifetime Achievement Award (2004).[8][9]

Personal life

Bogle and his wife Eve have six children and are grandparents. They reside in Bryn Mawr, Pennsylvania.

Books

References

  1. ^ David Brancaccio (October 10, 2003). "John Bogle". NOW on PBS. http://www.pbs.org/now/politics/bogle.html. 
  2. ^ Scott Burns (March 13, 2010). "A visit with John Bogle". Seattle Times. http://seattletimes.nwsource.com/html/businesstechnology/2011248667_burns14.html. 
  3. ^ Slater, Robert. John Bogle and the Vanguard experiment : One Man's Quest to Transform the Mutual Fund Industry. Chicago: Irwin Professional Pub., 1997. (ISBN 0786305592)
  4. ^ Boyle, Matthew (December 17, 2007). "Fortune Magazine interview". CNN. http://money.cnn.com/magazines/fortune/fortune_archive/2007/12/24/101939724/index.htm?postversion=2007121711. Retrieved 2007-12-17. 
  5. ^ Amy Barrett and Jeffrey M. Laderman (January 7, 1999). "That's Why They Call It Vanguard". Business Week. http://www.businessweek.com/1999/03/b3612086.htm. 
  6. ^ Sigma Investing. Review of Common Sense on Mutual Funds.
  7. ^ TIME 100 Most Influential People, 2004
  8. ^ Biography at Vanguard.com
  9. ^ World Wide Speakers Group - John Bogle

External links


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