Fund Lessons From John Bogle
Bogle would eventually rise to the title of executive vice president of Wellington Management. While in this position Bogle initiated the company's 1966 merger with Thorndike, Doran, Paine & Lewis, Inc. from Boston. In 1967, the same year that Bogle became the CEO of the merged firm, he suffered a heart attack that required a pacemaker be implanted.
With the new merger, Wellington Management drifted away from its traditionally conservative style, much to the dislike of original members of the firm. In 1969, amid internal turmoil and a stock market tumble, the company's assets slumped from $2.7 billion to $2.2 billion. In 1970, Walter Morgan retired and Bogle was on the brink of resignation. In 1974, a board of directors fired Bogle and planted the early seeds for his future success.
In a phoenixlike rebirth, Bogle managed to bounce back with The Vanguard Group. With this new endeavor, Bogle got back to basics. Besides regaining focus on what is best for the individual investor, he returned to his Princeton thesis, which was on the topic of mutual funds.
At that time, the idea of a mutual fund was beyond the realm of the private investor. Bogle, however, felt differently. While he has never claimed index funds as being his own concept, there is little question that Vanguard put the instruments that were once solely in the domain of business pension funds into the hands of the private investors.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV