Jack Bogle

Jack Bogle graduated magna cum laude with a degree in economics from P

He learned the investment management business by working for financial advisor Wellington Management from 1951 to 1974 and founded Vanguard in the latter year, becoming its CEO and chairman before retiring in 1999 from an active role in the company. As president of Vanguard's Bogle Financial Markets Research Center, he continues to write and lecture on investment issues and is widely recognized as "the conscience" of the mutual fund industry.

In "The Vanguard Experiment: John Bogle's Quest to Transform the Mutual Fund Industry" (1996), biographer Robert Slater describes Bogle's life as "evolutionary, iconoclastic and uncompromisingly committed to his founding principles of putting the interests of the investor first and constructively criticizing the fund industry for practices that run counter to low-cost, client-oriented mutual fund investing." Bogle is famous for his insistence, in numerous media appearances and in writing, on the superiority of index funds over traditional actively-managed mutual funds. He believes that it is folly to attempt to pick actively managed mutual funds and expect their performance to beat a well run index fund over a long period of time.

Bogle argues for an approach to investing defined by simplicity and common sense. Below are his eight basic rules for investors:

Select low-cost funds

Consider carefully the added costs of advice Do not overrate past fund performance Use past performance to determine consistency and risk

Beware of stars (as in, star mutual fund managers) Beware of asset size Don’t own too many funds Buy your fund portfolio – and hold it.

Famous Quotes

"Time is your friend; impulse is your enemy."

"If you have trouble imaging a 20% loss in the stock market, you shouldn't be in stocks."

"When reward is at its pinnacle, risk is near at hand."

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