Today, the Vanguard Group has confirmed that John Bogle, the esteemed founder of the company, has died at the age of 89. Bogle was also known as the “father of indexing.” His colleagues often referred to him by the name Jack.
He was considered as one of the pioneers of low-cost investing. He established Vanguard, which he then described as the “Vanguard Experiment,” way back in 1975 and launched its first index mutual fund a year later. It comes despite a backlash from the rest of the industry.
The fund turned into the Vanguard 500 index fund which currently has more than $441 billion in assets.
A decade later, he stated: “Our challenge at the time, was to build, out of the ashes of major corporate conflict, a new and better way of running a mutual fund complex.”
He added: “The Vanguard Experiment was designed to prove that mutual funds could operate independently, and do so in a manner that would directly benefit their shareholders.”
Llast year, Warren Buffett, the chief executive of Berkshire Hathaway, praised the veteran investor during a speech.
During a shareholder meeting, Buffet stated: “Jack has probably done more for the American investor than any man in the country.”
Bogle started his career way back in 1951 after he graduated from Princeton University. He started working at Wellington Management Company, an investment management firm that is based in Philadelphia. He eventually worked his way up to the position of president by 1967.
During the same year, he led the merger of Wellington and Thorndike, Doran, Paine & Lewis (TDLR), a Bostment investment company, however, he left the company seven years later to establish Vanguard.
Tim Buckley, the chief executive of Vanguard, stated: “Jack Bogle made an impact on not only the entire investment industry, but more importantly, on the lives of countless individuals.”