Trader Manager John Bogle
John Bogle is a famous managing trader who became the founder of one of the world's largest mutual funds.
John is not just a well-promoted person, but a real practicing investor who has made a huge contribution to the development of investing.
The book he wrote, “Mutual Funds from a Common Sense Point of View.
New Imperatives for the Intelligent Investor sheds light on the complex field of mutual fund investing, and the practical advice given in the book is still relevant today. Bogle received the rather funny nickname “Saint Jack” from his ill-wishers, since his truthful statements about his competitors, as well as his enormous openness in conversations with journalists, gave rise to many leaks of important information and cast a shadow on the entire industry, which his competitors clearly did not like.
However, any achievements of this greatest investor were preceded by a difficult life path, which we will try to introduce you to in this article.
That is why John’s family was always in a financial limbo, namely, moving from poverty to average income and vice versa.
Due to their financial situation, the guys had to study at a regular public school, but in high school they were both lucky, as their uncle got them scholarships from his company to study at the private school Blair Academy.
After going through this private school and receiving excellent recommendations, he entered the University of Pristan and in 1951 successfully graduated from it and received a bachelor's degree. John Bogle was well aware of the impact of education on his future, so instead of partying with friends in his free time, Bogle attended evening lectures at the University of Pennsylvania, where he successfully passed an innovative thesis and received a diploma.
Career ladder. Ups and downs
Having received an education and the appropriate diplomas, the promising young man was immediately hired to work at the well-known management company Wellington Management Company, which was managed by the famous trader Walter L. Morgan. John Bogle was so good at managing assets that he simply could not go unnoticed by management.
The close attention of the company's management, as well as clear, streamlined actions to enrich the company, very quickly raised John up the career ladder, so by the age of 35 he became executive vice president.
After eight years in his position, the results of the mistakes he made at the beginning of his journey began to appear. Thus, Wellington Management Company, under the leadership of John Bogle, began to actively absorb various funds in order to expand the list of clients and assets.
However, as a result of such actions, by the end of 1973, the fund's profitability dropped significantly, which led to a drop in the company's shares from 2.6 billion to 2 billion. Naturally, this $600 million mistake led to John Bogle being fired from his position in 1974.
A new page in history
Having accepted his dismissal, John Bogle, being one of the most experienced mutual fund managers, decided to create his own company, so at the end of 1974 The Vanguard Group was born. Realizing that large commissions greatly lead to a strong decrease in profitability and the secrecy of this area of investment, John creates the world's first Vanguard 500 index fund, which made investing accessible to everyone without unnecessary overpayment for commissions.
This index was based on his thesis, which was written during his student years, but this led to fundamental historical changes.
This innovation greatly enriched the company, and assets were increased from 1.8 billion to 600 billion between 1975 and 2002, which elevated the company to second place in the world ranking among mutual funds.
In 1999, John Bogle was recognized as one of the four investment giants of the 20th century, and in 2004, Time magazine named him one of the 100 most influential people in the world.