John Bogle

Jack Clifton Bogle
BogleDHVI.jpg
John Bogle. Photo by Paul (sddiehard)
Born May 8, 1929
Montclair, New Jersey
Nationality American
Alma mater Princeton University
Occupation Businessman, executive, author
Known for Founder of The Vanguard Group
Notable work Common Sense on Mutual Funds
The Little Book of Common Sense Investing
Website Research center , blog

John C. (Jack) Bogle, after whom the Bogleheads® are named, is founder of the Vanguard Group and creator of the world's first retail index mutual fund. Mr. Bogle has written several investing books, and since retiring from the Vanguard Group in 2000, he has worked tirelessly as an investor advocate. He is currently president of the Bogle Financial Markets Research Center, whose website contains comprehensive biographical information,[note 1] as well as a list of books authored and the texts of speeches delivered. His latest books are The Little Book of Common Sense Investing and Enough: True Measures of Money, Business, and Life.

Followers of John Bogle's investment philosophy admire him not just for his eloquence in tirelessly speaking and writing about the importance of fees and advantages of indexing, but in his conscious decision in the creation of The Vanguard Group not to enrich himself at the expense of consumers.

Vanguard is unusual among mutual fund companies since it is owned by the funds themselves. The company says that this structure better orients management towards shareholder interests. Other mutual fund sponsors are expected simultaneously to make a profit for their outside owners and provide the most cost-effective service to funds for their shareholders.

Contents

Biography

Early life and schooling

John C. Bogle was born on May 8, 1929 to William Yates Bogle, Jr. and Josephine Lorraine Hipkins in Montclair, New Jersey. The family's fortunes were wiped out during the Depression. During his childhood, Bogle contributed to the family finances by delivering newspapers and magazines and working at an ice cream parlor. During his teens, Bogle worked summers for the U.S post office.

Bogle was educated at Blair Academy, where he graduated, cum laude, in May 1947. Bogle attended Princeton University, where he graduated magna cum laude in Economics, due in part to a 123 page thesis, The Economic Role of the Investment Company.[1]

Business career

In June 1951 Bogle joined the Wellington Management Company when he was hired by company founder Walter Morgan. Morgan transferred management of the company to Bogle in 1965 by naming him executive vice president.

In 1966 Bogle merged the company with the Boston based investment counseling firm of Thorndike, Doran, Paine and Lewis, managers of the Ivest Fund. A corporate dispute led to Bogle being fired from the firm on January 23, 1974. Bogle appealed to the Wellington Company's mutual funds' board of directors to retain him as the funds' chairman and CEO. The board agreed, and a settlement was reached whereby a new firm, Vanguard, was established (May 1, 1975).[2][3]

Over the next two years Bogle began to implement his vision of mutual fund management. The fledgling firm was established as a mutual organization, with the mutual funds (and by extension, fund shareholders) owning the management company. This structure is designed so that the management company can provide services to the funds at cost and conflicts of interest can be reduced.[4] [note 2] In 1976, Bogle created the first index fund available to retail investors, Vanguard Index Trust (now known as Vanguard 500 Index Fund). In 1977, the firm abandoned broker distribution and moved to no-load fund distribution. The year also saw the creation of a series of defined maturity bond funds (short-term, intermediate-term, and long-term).[4]

John Bogle led Vanguard from 1975 to 1996. He remained a senior chairman of the firm until 2000 when, upon reaching mandatory retirement age, he stepped down from any management role. After retiring he founded the Bogle Financial Markets Research Center.

Writing career

In addition to his business career, Bogle has written extensively. He has produced articles for The Journal of Portfolio Management and the Financial Analysts Journal.

In 1993, Bogle published his first book, Bogle on Mutual Funds: New Perspectives for the Intelligent Investor. Eight additional books have followed; one of which, Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor (1999), received a fully updated anniversary edition in 2009.

In his books, Bogle has consistently argued for the superiority of index funds over actively managed funds and over the primacy of low cost investing. He argues that investors should simplify investment decisions; maintain a long term perspective on markets; and, having once established a diversified portfolio, remain disciplined by holding tight and staying the course. [5]

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

Notes

  1. . John Bogle's Vita (life) is provided in the table below:
    Vita

    Education

    • 1952–1959 University of Pennsylvania, Evening School of Business and Finance
    • May 1951 Graduated from Princeton University, magna cum laude in Economics
    • May 1947 Graduated from Blair Academy, cum laude

    Employment positions

    • 2000–present Founder, The Vanguard Group and President of the Bogle Financial Markets Research Center
    • 1996–2000 Senior Chairman, Vanguard
    • 1974–1996 Chairman and Chief Executive Officer, Vanguard
    • September 1974 Created The Vanguard Group
    • 1970–1996 Chairman, Wellington Fund and associated funds
    • 1967–January 1974 President, Wellington Management Company
    • 1965–1967 Executive Vice President, Wellington
    • 1962–1965 Administrative Vice President, Wellington
    • 1955–1962 Assistant to the President, Wellington
    • June 1951 Hired by Walter L. Morgan, Founder and Chairman, Wellington Management Co.

    Directorships and trusteeships

    • 1999–2007 National Constitution Center, Chairman of the Board
    • 2000–2005 Instinet Corporation, Director
    • 1996–2002 American Indian College Fund, Trustee
    • 1996–2000 Chris-Craft Industries, Director
    • 1989 Princeton University Investment Company, Director
    • 1981–1987 The American College, Trustee
    • 1978–1999 Mead Corporation, Director & Chairman of Finance Committee
    • 1975–2001 The General Accident Group of Insurance Companies, (later Commercial Union) Director
    • 1974–1999 Vanguard Group, Director, Chairman, 1974–1996
    • 1971–present Blair Academy, Trustee, Chairman, 1986–2001
    • 1971–1991 Meritor Financial Group, Director
    • 1971–1991 Bryn Mawr Hospital, Director and Chairman, Finance Committee

    Memberships and committees

    • 2009–present Financial Crisis Advisory Group
    • 2007–present Adirondack Roundtable Committee
    • 2007–present Lake Placid Shore Owners Association
    • 2006–present Dow Jones Wilshire Advisory Board
    • 2004–present American Philosophical Society
    • 2004–present American Academy of Arts and Sciences
    • 2003–present Journal of Investment Management, Advisory Board
    • 2003–present Financial Analysts Journal, Advisory Council
    • 2002–2003 Conference Board Commission on Public Trust and Private Enterprise
    • 2002–present Phi Beta Kappa Society, Investment Committee
    • 1997–2000 U.S. Independence Standards Board
    • 1972–1976 National Association of Securities Dealers, Chairman, Investment Companies Committee
    • 1972–1978 Princeton University, Economics Department Advisory Council (Chairman 1978)
    • 1969–1974 Investment Company Institute, Board of Governors (Chairman 1969–70)

    Honorary degrees

    • May 15, 2011 Villanova University, Doctor of Commercial Science
    • May 23, 2010 Trinity College, Doctor of Humane Letters
    • May 18, 2007 Georgetown University, Doctor of Humane Letters
    • May 31, 2005 Princeton University, Doctor of Laws
    • May 15, 2004 Pennsylvania State University, Doctor of Humane Letters
    • June 14, 2003 Drexel University, Doctor of Business Administration
    • May 23, 2001 New School University, Doctor of Laws
    • May 13, 2001 Susquehanna University, Doctor of Laws
    • December 15, 2000 Eastern University, Doctor of Humane Letters
    • June 11, 2000 University of Rochester, Doctor of Laws
    • October 22, 1999 University of Delaware, Doctor of Laws
    • October 15, 1999 Albright College, Doctor of Humanities
    • May 17, 1997 Widener University, Doctor of Humane Letters

    Publications: books

    • 2013 The Man in the Arena (Written by Knut Rostad, Wiley)
    • 2012 The Clash of the Cultures, Investment vs. Speculation(Wiley)
    • 2011 The House that Bogle Built (Written by Lewis Braham, McGraw-Hill)
    • 2010 Don't Count On It (Wiley)
    • 2009 Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition (Wiley)
    • 2008 Enough. True Measures of Money, Business & Life (Wiley)
    • 2007 The Little Book of Common Sense Investing (Wiley)
    • 2005 The Battle for the Soul of Capitalism, (Yale University Press)
    • 2002 Character Counts: The Creation and Building of The Vanguard Group (McGraw-Hill)
    • 2000 John Bogle on Investing: The First 50 Years (McGraw-Hill)
    • 1999 Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor(Wiley)
    • 1996 John Bogle and the Vanguard Experiment: One Man's Quest to Transform the Mutual Fund Industry (Written by Robert Slater, Irwin)
    • 1993 Bogle on Mutual Funds: New Perspectives for the Intelligent Investor (Irwin)

    Publications: articles

    • 2011 The Journal of Portfolio Management, The Clash of the Cultures
    • 2009 The Journal of Portfolio Management, The Fiduciary Principle: No Man Can Serve Two Masters
    • 2008 Financial Analysts Journal, Black Monday and Black Swans
    • 2008 The Journal of Portfolio Management, A Question So Important That It Should Be Hard To Think About Anything Else
    • 2005 Bold Thinking on Investment Management: The FAJ 60th Anniversary Anthology
    • 2004 Financial Analysts Journal, The Mutual Fund Industry Sixty Years Later: For Better or Worse?
    • 2003 CFA Magazine, Whether Markets are more Efficient or less Effective, Costs Matter
    • 2003 Journal of Investment Management, Don't Count on it The Perils of Numeracy
    • 2002 The Journal of Portfolio Management, An Index Fund Fundamentalist
    • 2002 The Corporate Board, Has Corporate Governance Let Us Down?
    • 1998 The Journal of Portfolio Management, The Implications of Style Analysis for Mutual Fund Performance Evaluation
    • 1995 The Journal of Portfolio Management, The 1990s at the Halfway Mark
    • 1992 The Journal of Portfolio Management, Selecting Equity Mutual Funds
    • 1991 The Journal of Portfolio Management, Investing in the 1990s: Remembrance of Things Past, and Things Yet to Come.
    • 1997–2004 The Wall Street Journal, numerous op-eds
    • 1999–2003 The New York Times, numerous op-eds

    Awards

    • 2012 RIIA Consumer Advocate Award
    • 2011 Salvation Army "Others" Award
    • 2011 Tiburon Strategic Advisors CEO Summit XX Award
    • 2010 FUSE Research Network Award for Lifetime Impact and Commitment to Investors
    • 2010 Investment Management Consultants Assoc. Richard J. Davis Ethics Award
    • 2009 Graham & Dodd Best Perspectives Award for "Markets in Crisis"
    • 2009 Graham & Dodd Perspective Article Award for "Back Monday & Black Swans"
    • 2009 Tenth Annual Bernstein Fabozzi/Jacobs Levy Award for Outstanding Article – A Question So Important
    • 2008 The Bonnell Award, Community College of Philadelphia
    • 2007 Heritage Award, The Historical Society of Pennsylvania
    • 2007 Union League Business Leadership Award
    • 2007 National Council on Economic Education Visionary Award
    • 2007 CFA of San Francisco Distinguished Speakers Award
    • 2006 Center for Corporate Excellence Exemplary Leader Award
    • 2006 Chester County Economic Development Council Hall of Fame Award
    • 2005 Friend of the Delaware Investor Award from the Delaware Dept. of Justice
    • 2004 Committee of Seventy, Philadelphia Good Citizenship Award
    • 2004 Marketing Expo, Lifetime Achievement Award
    • 2004 Institutional Investor Lifetime Achievement Award
    • 2003 National Foundation for Teaching Entrepreneurship, Entrepreneur of the Year
    • 2003 Yale School of Management, Legends of Leadership
    • 2003 Better Business Bureau, Certificate of Commendation,
    • 2002 Union League of Philadelphia, Founders Award for Business Leadership
    • 2002 Franklin Celebration in Philadelphia, Benjamin Franklin Founders Award
    • 2000 Pennsylvania Chamber of Commerce, Pennsylvania's Business Leader of the Year
    • 1999 Princeton University, Woodrow Wilson Award for distinguished achievement in the Nation's service
    • 1999 Fixed Income Analysts Society, Inc., Hall of Fame
    • 1999 PA Partnership for Economic Education, Adam Smith Distinguished Leadership Award
    • 1999 National Association of Personal Financial Advisers, Special Achievement Award
    • 1999 National Investment Company Service Association, Robert L. Gould Award
    • 1998 Temple University, Musser Excellence in Leadership Award
    • 1997 Assoc. for Investment Management and Research, Award for Professional Excellence
    • 1997 Leadership in Financial Services (Macmillan Press Ltd), one of the Financial Leaders of the 20th Century
    • 1995 Advancement for Delaware Valley Independent Schools, Award for Philanthropy to Independent Education,
    • 1993 Financial Analysts of Philadelphia, Lifetime Award of Distinction
    • 1992 Newcomen Society, Honor for innovation

    Public recognition

    • 2005 FINANCIAL PLANNING Magazine, Hall of Fame
    • 2005 TIME Magazine, "Ten Questions for John Bogle"
    • 2004 TIME magazine, The Time 100—the world's 100 most powerful and influential people
    • 2002–2004 Weekly program with Tyler Mathisen on CNBC
    • 2001 Louis Rukeyser's Wall Street Week, Hall of Fame
    • 1999 FORTUNE magazine, One of the investment industry's four Giants of the 20th Century.
    • 1999 Barron's—Investment Hall of Fame
    • 1996 Fund Action Magazine, Fund Leader of the Year

    Other achievements

    • 1999–2000 Henry Kaufmann Visiting Professor of Business, New York University
    • 1999 Leadership Speakers Series, Fox School of Business Management, Temple University

    Distinguished Lectures

    • 2009 Columbia Business School Stanley R. Klion Forum
    • 2008 George Washington Manual Cohen Lecture Series
    • 2007 Princeton University, The Maclean House 2007 Lecture Series
    • 2005 Vanderbilt University, Distinguished Speaker Series
    • 2005 Duke University's Fuqua School of Business, Distinguished Speakers Series
    • 2004 Washington State University, The Gary M. Brinson Distinguished Lecture
    • 2004 University of Mississippi, Otho Smith Fellows Program Distinguished Lecture
    • 2003 Vanderbilt University, The Owen School of Management—Distinguished Speaker Series
    • 2003 Wake Forest University, Joseph A. Jones Lecture
    • 2003 Bryn Mawr Presbyterian Church, Community Forum Distinguished Speaker Series
    • 2002 Cornell University, Park Distinguished Lecture Series
    • 2002 Princeton University, Center for Economic Policy Studies
    • 2002 Neeley School of Business, Executive Speaker Series
    • 2002 Blair Academy, Hollerith Lecture Series
    • 2000 New York University, Executive Lecture Series
    • 2000 New York University, Seymour Jones Distinguished Lecture
    • 1999 Massachusetts Institute of Technology (Lincoln Laboratories), Distinguished Lecture Series
    • 1998 Houston Club, Distinguished Speaker Series.
  2. The SEC gave final approval of Vanguard's mutual form of business organization in 1981. See The Culture That Gave Rise To The Current Financial Crisis, John C. Bogle

See also

References

  1. Slater, Robert. The Vanguard Experiment: John Bogle's Quest to Transform the Mutual Fund Industry. Chicago, IL: Irwin Professional Publishing, Inc., 1997, pp. 1-7.
  2. "John Bogle". American National Business Hall of Fame. http://anbhf.org/fellows/john-bogle/. Retrieved 13 April, 2016.
  3. Slater, Robert (October 1,1996). John Bogle and the Vanguard Experiment. McGraw-Hill. pp. 28 - 39. ISBN 978-0786305599.
  4. 4.0 4.1 "Vanguard: Saga of Heroes" John Bogle, February 27, 2007
  5. Allen Roth, John Bogle's 10 rules of investing - CBS News, August 20, 2012

External links