It is with great sadness that I spread the news of the death of Jack Bogle, the creator of the Index Fund and the founder of The Vanguard Group, maybe the only financial institution which I admire.
Jack died today, Wednesday, January 16, 2019, at the age of 89.
He created the index fund in 1975, after many studies which lead him to believe that most experts were not able to beat the benchmark composed of the biggest companies in the market.
Jack believed that by buying all the stocks in the market, he could reduce the cost involved with active management. At first, people laughed at him and called him un-American, but after so many years he has been proven right over and over again.
Since the creation of index funds, the industry has grown to a $7 trillion industry, which is slowly catching up with the mutual fund industry presently valued at $9 trillion.
My belief in index funds
I am a strong believer in Jack Bogle’s legacy. I have almost all my money in index funds and almost all of it with Vanguard.
Rest in peace Jack Bogle, your creation has paid handsomely for me and for millions of investors.