Trader manager John Bogle

John Bogle is a renowned managing trader who founded one of the world's largest mutual funds.

John is not just a hyped-up figure, but a truly practicing investor who has made a tremendous contribution to the development of investing.

His book, "Common Sense Mutual Funds: New Imperatives for the Intelligent Investor," sheds light on the complex industry of mutual fund investing, and the practical advice it offers remains relevant today.

Bogle earned the rather humorous nickname "Saint Jack" from his detractors, as his frank statements about competitors and his extreme openness with journalists led to numerous leaks of important information and cast a shadow on the entire industry, which clearly displeased his competitors.

However, any achievements of this great investor were preceded by a difficult life, which we will try to acquaint you with in this article.

John Bogle and his twin brother were born in the small town of Montclair, New Jersey, on May 8, 1929. His family truly experienced life in poverty, as the boys were born during a very difficult economic period in the United States, the so-called Depression, when jobs were being lost at an incredible rate.

This is why John's family was always in a precarious financial situation, moving from poverty to middle class and back again.

Due to financial difficulties, the boys had to attend a regular public school, but in high school, luck smiled on them both, as their uncle got them a scholarship from his company to a private school, Blair Academy.

After graduating from this private school and receiving excellent recommendations, he enrolled at Priest University and successfully graduated in 1951 with a bachelor's degree. John Bogle understood the impact of his education on his future, so instead of hanging out with friends in his free time, Bogle attended evening lectures at the University of Pennsylvania, where he successfully completed an innovative thesis and earned his diploma.

Career Ladder: Ups and Downs

Having completed his education and the relevant diplomas, the promising young man was immediately hired by the renowned Wellington Management Company, which was run by the renowned trader Walter L. Morgan. John Bogle was so adept at asset management that he simply couldn't go unnoticed by management.

The close attention of the company's management, as well as clear, well-established actions to enrich the company, very quickly raised John up the career ladder, so by the age of 35 he became executive vice president.

Eight years into his tenure, the consequences of his early mistakes began to show. Under John Bogle's leadership, Wellington Management Company began actively acquiring various funds to expand its client base and assets.

However, as a result of these actions, the fund's returns plummeted by the end of 1973, leading to a drop in the company's shares from $2.6 billion to $2 billion. Naturally, this $600 million mistake led to John Bogle's dismissal from his position in 1974.

A new page in history

After accepting his resignation, John Bogle, one of the most experienced mutual fund managers, decided to start his own company, and The Vanguard Group was born in late 1974. Recognizing that high fees were leading to significantly lower returns and the closed nature of this investment field, John created the world's first index fund, the Vanguard 500, which made investing accessible to everyone without overpaying for fees.

This index was based on his thesis, which was written during his student years, but it led to fundamental historical changes.

This innovation greatly enriched the company, and its assets increased from $1.8 billion to $600 billion between 1975 and 2002, making the company the second-largest mutual fund in the world.

In 1999, John Bogle was recognized as one of the four investment giants of the 20th century, and in 2004, Time magazine included him in its list of the 100 most influential people in the world.