Brennan, his handpicked heir and second-in-command, whom he had hired in 1982. īogle suffered heart issues in the 1990s, subsequently relinquishing his role as Vanguard CEO in 1996. In a 2005 speech, Samuelson ranked "this Bogle invention along with the invention of the wheel, the alphabet, Gutenberg printing". It was not immediately well received by individuals or the investment industry, but is now lauded by investment-legend Warren Buffett, among others. In 1976, influenced by the works of Paul Samuelson, Bogle created the First Index Investment Trust (a precursor to the Vanguard 500 Index Fund) as one of the first index mutual fund available to the general public. In 1999, Fortune magazine named Bogle as "one of the four investment giants of the twentieth century". In 1974, Bogle founded The Vanguard Group, which is now one of the most respected and successful companies in the investment world. Following an index created by Standard & Poor's allowed the creation of a fund that Bogle himself did not oversee. It was a poor decision which he later considered his biggest career 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." He was motivated to form an index fund partly as a result of the merger's aftermath, the terms of which prohibited him from managing money directly on behalf of clients. After successfully climbing through the ranks, Bogle replaced Morgan as chairman of Wellington's mutual funds in 1970, but was later fired for an "extremely unwise" merger that he had approved. Eventually he succeeded, and the new fund became a turning point in his career. Bogle persuaded the Wellington management to change its strategy of concentrating on a single fund and create a new fund. Hired by Morgan at the Wellington Fund, Bogle was promoted to assistant manager in 1955, at which time he was able to analyze the company and its investment department. Bogle very late in his careerĪfter graduating from Princeton, Bogle sought a position in banking or investments. Morgan, founder of the Wellington Fund, reportedly as a result of Morgan reading his 130-page thesis paper. īogle graduated magna cum laude from Princeton in 1951 and was soon hired by Walter L. Bogle spent his junior and senior years working on his thesis "The Economic Role of the Investment Company". During his university years, Bogle studied the mutual fund industry. In 1947, Bogle graduated from Blair Academy cum laude and was accepted at Princeton University, where he studied economics and investment. At Blair, Bogle showed a particular aptitude for mathematics, with numbers and computations fascinating him. Their academic record there enabled them to transfer to Blair Academy on work scholarships. īogle and his twin, David, attended Manasquan High School near the New Jersey shore for a time. They lost their money and had to sell their home, with his father falling into alcoholism, which resulted in his parents' divorce. His family was harmed by the Great Depression. John Bogle was born on May 8, 1929, in Montclair, New Jersey, to William Yates Bogle, Jr. His 1999 book Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor became a bestseller and is considered a classic within the investment community. The ideal investment vehicle for Bogle was a low-cost index fund representing the entire US market, held over a lifetime with dividends reinvested, and with a minimum 20% bond allocation. An avid investor and money manager himself, he preached investment over speculation, long-term patience over short-term action, and reducing broker fees as much as possible. He was the founder and chief executive of The Vanguard Group, and is credited with popularizing the index fund. John Clifton " Jack" Bogle (– January 16, 2019) was an American investor, business magnate, and philanthropist.
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