John Clifton "
Jack" Bogle 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 within the investment community.
Bogle was born in
Montclair, 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.
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 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, 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 doctorate from Princeton University in
2005.
Bogle also 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 former president
George H. W. Bush was named chairman.
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 contends that it is folly to attempt to pick actively managed mutual funds and expect their performance to beat a low-cost index fund over a long period of time, after accounting for the fees that actively managed funds charge.
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
Books
Bogle on
Mutual Funds:
New Perspectives for the Intelligent Investor (McGraw-Hill,
1993),
ISBN 1-55623-860-6
Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor (
John Wiley & Sons, 1999), ISBN 0-471-39228-6
John Bogle on Investing:
The First 50 Years (McGraw-Hill,
2000), ISBN 0-07-136438-2
Character Counts:
The Creation and
Building of The Vanguard Group (McGraw-Hill,
2002) ISBN 0-07-139115-0
The Battle for the
Soul of
Capitalism (
Yale University Press, 2005), ISBN 0-300-10990-3
The Little Book of
Common Sense Investing:
The Only Way to Guarantee Your
Fair Share of
Stock Market Returns (John Wiley & Sons, 2007), ISBN 978-0-470-10210-7
Enough :
True Measures of
Money,
Business, and
Life (John Wiley & Sons, 2008), ISBN 978-0-470-39851-7
Common Sense on Mutual Funds: Fully Updated
10th Anniversary Edition (John Wiley & Sons, 2009), ISBN 0-470-13813-0
Don't
Count on it!:
Reflections on
Investment Illusions, Capitalism, "
Mutual" Funds, Indexing, Entrepreneurship,
Idealism, and
Heroes (John Wiley & Sons,
2010) ISBN 978-0-470-64396-9
The Clash of the Cultures: Investment vs. Speculation (John Wiley & Sons,
2012) ISBN 978-1118122778
http://en.wikipedia.org/wiki/John_C._Bogle
- published: 31 Dec 2014
- views: 4363