John Bogle—Vanguard Founder

Anyone who’s spent more than five seconds in the financial world is familiar with index funds. That may not have been the case, though, had John C. Bogle not come along. And while we’re on the subject, one of the biggest entities in finance—The Vanguard Group—wouldn’t exist. Five years after his death at the age of 89, his influence on the financial world is felt seemingly everywhere.

Education

As a child, Bogle’s family was impacted by the Great Depression. Determined to bounce back from poverty by way of a successful career, he took an interest in mathematics, computation, and pretty much anything centered around it. And he was incredibly talented at it, to boot.

After attending Blair Academy on a work scholarship and graduating cum laude, he studied economics at Princeton University. These studies sparked his interest in mutual funds, leading to his thesis titled, “The Economic Role of the Investment Company.” This thesis was read by Wellington Fund founder Walter L. Morgan, who hired him soon after.

Career

An assistant manager at the Wellington Fund by 1955, he persuaded them to focus on more than a single fund. He climbed the ranks until he became chairman of Wellington’s mutual funds in 1970. But all good things must come to an end. Bogle was eventually fired for approving an “extremely unwise” merger. While it was no doubt a major mistake in his career, he used it as a learning opportunity.

In 1974, John Bogle founded The Vanguard Group, which is currently one of the largest and most successful asset managers  in finance. In 1976, he created the First Index Investment Trust, which was a precursor to the Vanguard 500 Index Fund. Thanks to its success, index funds became—and remain—incredibly popular. 

Due to heart issues that began in 1990, Bogle stepped down as CEO in 1996. Following a successful heart transplant in the same year, he returned to the company as senior chairman, where he stayed until 1999.

Notable Achievements

• Named one of four “Giants of the 20th Century” in the investment industry by Fortune Magazine in 1999.
• Received the Woodrow Wilson Award from Princeton University in 1999.
• Named one of the “World’s 100 Most Powerful and Influential people” in 2004 by Time Magazine.
• Received a Lifetime Achievement Award from Institutional Investor in 2004.
• Elected to the American Philosophical Society in 2004.

John C. Bogle died on January 16, 2019, leaving behind a financial legacy that continues to impact the financial world to this day.