Vanguard John c. Bogle, founder and godfather of index funds, died on January 16, 2019, at the age of 89.
Mr Berg is the founder of the world’s first index mutual fund and his vanguard group now has more than $5.1tn under management. He is considered one of the world’s greatest investors. His index mutual funds enable investors to achieve high returns at a lower cost than actively managed funds.
He founded vanguard group, the world’s largest mutual fund, in 1975 and later served as chairman and CEO until 1996. Vanguard now manages assets for more than 20 million investors in about 170 countries.
He has written 13 books on investing, most recently “” Stay the Course: the Story of Vanguard and the Index Revolution” “in 2018.
In his annual letter to shareholders in March 2017, Warren Buffett, the billionaire us investor known as the “god of stocks”, wrote: “if a statue is to be erected in memory of the man who has done the most for us investors, it should be jack enberg. Jack was often laughed at in his early years by the investment management industry. Today, however, he is content to know that he has helped millions of investors earn far better returns on their savings than they could have. He’s a hero to them and me.”
“Jack has been urging investors to invest in ultra-low-cost index funds for decades. Over the course of his investment career, a lot of his wealth has gone to the managers, and his accumulated wealth is only a small part of it.
Jack berg, who is worth an estimated $80 million, has a history of heart problems. He suffered six heart attacks at age 31 and received a heart transplant at age 65.
Bogle’s main philosophy is “common sense” investing. In fact, two of his books use it in their titles.
“” invest as efficiently as possible, using low-cost funds that can be bought and held for a lifetime,” “he told Reuters in 2012. Instead of chasing past performance, buy broad equity and bond index funds, where your bond ratio is roughly equivalent to your age. Above all, you must be disciplined and you must save, even if you hate our current financial system. Because if you don’t save, you will lose everything.
Today, we look back at the godfather of index funds, John Bogle, and his great life.
Early life and education
John Bogle was born on May 8, 1929 in New Jersey.
His family was affected by the great depression. Without money, he had to sell their house, his father fell into alcoholism, which caused his parents to divorce.
Bogle attends Manasquan high school on the New Jersey shore. His academic record enabled him to transfer to Blair college for a scholarship.
At Blair college, bogle showed a special aptitude for mathematics, fascinated by Numbers and calculations. Bogle graduated from Blair college with honors in 1947 and was accepted to Princeton university, where he studied economics and investing.
At Princeton university in 1949, Bogle happened to read an article about the mutual fund industry ─ ─ “Big Money in Boston”, sparked his interest in the fund industry, decided to study no analysis of the mutual fund industry before. Bogle spent his junior and senior years writing his thesis, “the economic role of investment companies.”
He received his undergraduate degree in 1951 and attended evening and weekend classes at the university of Pennsylvania.
Bogle and its index funds
After graduating from Princeton in 1951, bogle went into banking and investing. He was hired by the company’s founder, Walter l. Morgan, to manage the Wellington fund. “Bogle knows more about the fund business than we do,” Morgan said.
In 1965, Morgan transferred management to bogle and appointed him executive vice President. After a successful promotion, he was appointed chairman of Wellington, but was later dismissed due to a company dispute on 23 January 1974.
On May 1, 1975, Bogle founded Vanguard, which is now one of the most respected and successful companies in investing. Bogle managed to turn Vanguard into a giant company.
In August 1976, bogle launched the standard & poor’s 500 index fund, which is the first index fund launched to individual investors in the world. At present, the scale of the fund exceeds 240 billion us dollars, and it is one of the largest public funds in the world.
From 1976 to 1995, after 20 years of development, the market index funds in the United States accounted for only 3% of the market share of public funds.
In the 20 years from 1995 to 2018, the market share of index funds in America’s publicly traded funds has soared to 38%. Vanguard would not have been successful without the loneliness of the first two decades.
Bogle suffered a heart attack in the 1990s and stepped down as pioneer’s chief executive in 1996.
He had a successful heart transplant in 1996. He then returned to Vanguard as senior chairman.
In 2012, the total assets under management of navigator group have reached 2 trillion us dollars.
After stepping down as Vanguard’s senior President in 2000, many other organizations still fund Scholarships, such as the National Constitution Center in Philadelphia and the Bogle Brothers Scholarships established at Princeton, their Alma mater.
The group is now one of the world’s largest investment managers, with assets under management growing from $2bn when it was founded to more than $5.3tn.
It is also the world’s largest publicly traded fund and the second-largest institutional investor by assets under management. At the same time, through the investment channels of RQFII and the shanghai-shenzhen-hong kong stock connect, Vanguard group has A quota of about 30 billion yuan to invest in China’s a-shares, and owns more than 1,900 companies.
Founder Bogle, who is less wealthy than other mutual-fund giants, gave up group ownership in favor of letting investors become shareholders in vanguard. If John Bogle had not relinquished his ownership, he would now be one of the world’s three richest men. He has said his own wealth is largely in Vanguard and Wellington mutual funds.
Investment rules and insights
1, you have to have realistic investment expectations, investment such as thin bagel, speculation such as sweet doughnut.
Don’t look for the needles in the crenel; you should buy the whole of it. (rather than picking stocks, invest in index funds)
The theory that when a signal is given, investors should enter or exit the market is not credible. I have been in the investment world for nearly 50 years, and I have never seen anyone who can make sustained and accurate timing. & have spent & have spent & have spent & have spent
Time is your friend, impulse is your enemy.
5. Carefully consider Suggestions to increase costs.
6, do not overestimate the fund’s previous performance.
Time is your friend; & have spent Impulse is your enemy.
Learn every day, especially from the experience of others. This is cheaper!
Index funds are a smart, available method of achieving market returns with minimal effort and at minimal cost. Index funds eliminate the risk of individual stocks, markets and manager selection, leaving only stock market risk.
10. It’s a loser’s game to speculate about short-term market timing. We don’t know what tomorrow will bring. So I’m only going to make a reasonable prediction for 10 years, and I’m not going to do anything else.
Four investment principles: goal – balance – cost – discipline
1. Objectives: set clear, appropriate investment objectives. Appropriate investment objectives should be measurable and achievable. Success should not depend on outsized investment returns or unrealistic savings or spending requirements. Clearly defining goals and achieving ways to achieve them can help protect investors. & have spent
Balance: the use of a wide variety of funds to develop appropriate asset allocation. A sound investment strategy begins with asset allocation that is appropriate for the objectives of the portfolio. Allocation should be based on a reasonable expectation of risk and return and use diversification to avoid unnecessary risks. Asset allocation and diversification stem from the idea of balance. Since all investments involve risk, investors must manage the balance between risk and potential return by choosing a portfolio. & have spent
3. Cost: the market cannot predict the maximum cost reduction. Costs are timeless, and the lower the cost, the greater the share of the return on investment. Research shows that low-cost investments tend to outperform high-cost alternatives. In order to maintain more returns, tax administration efficiency. You can’t control the market, but you can control costs and taxes. & have spent
Discipline: maintaining perspective and long-term discipline can trigger strong emotions. In the face of market turmoil, some investors may find themselves making impulsive decisions or unable to implement investment strategies or rebalance their portfolios as needed. Discipline and perspective can help them stay committed to long-term investment plans in times of market uncertainty.
Buffett: Bogle has done more for American investors than anyone else
Bogle is the hero of buffett’s letter. Mr. Buffett repeatedly recommended Mr. Borg’s books and recommended investors buy vanguard’s s&p 500 index fund. In his “10-year bet” with Ted Seides of Protege Partners in 2008, buffett bet on the s&p 500 index fund, which led the way.
Vanguard founder John bogle “” may have done more for American investors than anyone else in the country,” “he said at Berkshire’s 52nd annual meeting in Omaha, neb., on May 6, 2017. (Bogle has probably done more for the American investor than any man in the country.)
“It’s not in Wall Street’s interest for index funds to grow because it lowers fees so much,” buffett said. When jack started, few people, certainly not Wall Street, applauded him. He was the subject of some ridicule. Now, when we go into index funds, we’re talking about trillions of dollars. “
“Jack has at least saved, in the pockets of investors, he has put tens, tens and tens of billions of dollars into their pockets! “