Jack Bogle, Legendary Investor And Founder Of Vanguard Group, Dies At 89

John Bogle Vanguard founder who revolutionized investing with low-fee funds dies

John Bogle Vanguard founder who revolutionized investing with low-fee funds dies

John Clifton Bogle, the man who popularised low-priced index investing as the founder of fund management firm Vanguard, has died aged 89.

Vanguard announced his death.

During his tenure at Vanguard, Bogle suffered several heart attacks and underwent a heart transplant in 1996, the year he stepped down as CEO.

In 1974, he founded the Vanguard Company, ushering in the era of low-cost, low-fee index funds, which simplified investing for many families.

"He came up with some great, simple phrases that took very complicated and sophisticated investment concepts and made them understandable for the average investor".

John Clifton Bogle, known as "Jack" became a legend on Wall Street after he gave ordinary investors the chance to put their money in index mutual funds in the mid-1970s. Reading was among his pleasures, as was The New York Times crossword puzzle, which he often completed in less than 20 minutes.

"For decades, Jack has urged investors to invest in ultra-low-cost index funds", Buffett said.

Index funds gradually chipped away at the once-dominant market position of actively managed funds, a trend fueled by performance data that consistently shows index funds produce better returns than a majority of managed funds, after costs are factored in.

In recent years, it has been hard to argue against him. That initial fund is now the Vanguard 500 Index fund with $400 billion in assets. The next year he again broke from industry practice, selling mutual funds directly to investors rather than through brokers and thus eliminating the sales fees of up to 9 percent that funds typically charged. The investor was still connected the company, which now manages some $5,1 trillion in assets worldwide, through the Bogle Financial Markets Research Center.

"Mr Bogle was a man of incredibly high integrity".

"John Bogle has changed a basic industry in the optimal direction", Paul Samuelson, a Nobel laureate in economics, wrote in a foreword to "Bogle on Mutual Funds" (1993). His thesis was on the fund industry, which was then still in its infancy. But Bogle continued to maintain that many funds were overcharging investors, and once called the industry "the poster-boy for one of the most baneful chapters in the modern history of capitalism". He said he learned an important lesson in how little money managers really know about what the market will do.

Bogle spent the first part of his career at Wellington Management Co., a mutual fund company then based in Philadelphia.

He married Eve Sherrerd in 1956.

Mr. Bogle regularly gave half his salary to charities.

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