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How John Bogle and Vanguard Turned Wall Street Inside Out and Saved Investors

Jonathan Hayes

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Published in The Bogle Effect: How John Bogle And Vanguard Turned Wall Street Inside Out And Saved Investors Trillions

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John Bogle was a visionary investor who revolutionized the way Americans save for retirement. He founded Vanguard Group in 1975, and under his leadership, Vanguard became the largest mutual fund company in the world. Bogle's philosophy was simple: investors should invest in low-cost index funds that track the overall market. This approach has saved investors billions of dollars in fees, and it has helped to democratize investing.

The Early Years

John Bogle was born in 1929 in Montclair, New Jersey. His father was a stockbroker, and Bogle grew up learning about the financial markets. After graduating from Princeton University, Bogle went to work for Wellington Management Company, a mutual fund company. In 1965, he became the president of Wellington, and he quickly began to make changes to the company's investment philosophy.

The Bogle Effect: How John Bogle and Vanguard Turned Wall Street Inside Out and Saved Investors Trillions

by Eric Balchunas

4.5 out of 5

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Bogle believed that investors were better off investing in low-cost index funds that tracked the overall market. Index funds are passively managed, meaning that they do not attempt to beat the market. Instead, they simply track the performance of a particular index, such as the S&P 500.

Bogle's ideas were not popular with many of Wellington's investors, who were accustomed to the company's actively managed funds. In 1974, Bogle left Wellington and founded Vanguard Group.

Vanguard Group

Vanguard Group is a mutual fund company that offers a variety of low-cost index funds. Vanguard's funds are designed to track the performance of different market indexes, such as the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite.

Vanguard's funds are popular with investors because they are low-cost and easy to understand. Vanguard's fees are typically much lower than the fees charged by actively managed funds. This means that investors can save more of their money over time.

Vanguard has grown to become the largest mutual fund company in the world. The company has over $6 trillion in assets under management, and it serves over 20 million investors.

John Bogle's Legacy

John Bogle is considered one of the most influential investors of all time. His philosophy of investing in low-cost index funds has saved investors billions of dollars in fees. Bogle's work has also helped to democratize investing, making it easier for ordinary Americans to save for retirement.

Bogle died in 2019 at the age of 89. He left behind a legacy of innovation and service to investors. His work will continue to benefit investors for generations to come.

Bogle's legacy is one of innovation and service to investors. His work has made it easier for ordinary Americans to save for retirement, and it will continue to benefit investors for generations to come.

The Bogle Effect: How John Bogle and Vanguard Turned Wall Street Inside Out and Saved Investors Trillions

by Eric Balchunas

4.5 out of 5