January 16, 2019

AMERICAN GENIUS:

John Bogle, Vanguard Founder Who Advocated Low Fees, Dies at 89 (Christopher Condon, January 16, 2019, Bloomberg)

By word and example, Bogle proselytized on behalf of patient, long-term investing in a diversified group of well-run companies. He focused his advocacy on index funds, those that buy and hold the broadest mixes of stocks. He cautioned that the pursuit of quick trades and short-term profits typically helped investment advisers more than investors.

"The way to wealth for those in the business is to persuade their clients, 'Don't just stand there. Do something," he wrote in "The Little Book of Common Sense Investing" (2007). "But the way to wealth for their clients in the aggregate is to follow the opposite maxim: 'Don't do something. Just stand there."

Bogle's formula turned Vanguard into the largest U.S. manager of stock and bond funds.

"He was a towering figure," Burton Malkiel, a Princeton University economics professor and Vanguard board member since 1977, said in an interview. "The mutual-funds industry is infinitely better because of Jack Bogle." [...]

Billionaire investor Warren Buffett praised Bogle in his annual letter to Berkshire Hathaway Inc. shareholders in early 2017.

"If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle," Buffett wrote. "He has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me."


Posted by at January 16, 2019 5:49 PM

  

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