Tag: RIP

Never forget these two axioms:

Money frees us, but its pursuit may enslave us.

It’s not how much you have at the end; it’s how much you could have made.

I was ready to discuss the other thoughts I had on index funds and then I heard the news. As physicians, we know better than most that dying is past of life. We all know that death is unavoidable, inescapable, and despite what most Americans want—-an option that cannot be indefinitely deferred. We even expect it sooner than later in some of our patients—or even our family or friends.

None of that makes it easier.

It’s even odder when the death is someone we never met, but yet greatly affected our lives.

Enter John (Jack) Bogle.

If greatness is defined by changing something so dramatically that it’s impossible to envision what it would be like without said person’s contributions, then John Bogle would be immensely great.

John Bogle, like so many pioneers before him who were ridiculed, did two MASSIVELY important things that can never be redone now.

1.) He invented the index fund.

Yep.

Before him, it didn’t exist. Once he introduced it, he was savaged for it as “experts” were telling everyone how this would be no way to make “real money”.  The experts assured us (as they always do) they were right and nothing new was going to disrupt that paradigm. If the last few decades has taught us anything, it’s these two things—experts are often wrong particularly when predicting the future and those who disrupt an entire industries will build billion dollar industries.

2.) No one argued for low(er) fees and costs on funds for the average retail investor than John Bogle forcing low cost alternatives in the funds he offered thus forcing fund fees down across the industry and keeping them low(er) over the decades.

Of course, his investment house is now the largest mutual fund family in the entire planet with over five TRILLION US dollars under management.

Here is a fitting tribute to the investing legend:

“Mr. Bogle had legendary status in the American investment community, largely because of two towering achievements: He introduced the first index mutual fund for investors and, in the face of skeptics, stood behind the concept until it gained widespread acceptance; and he drove down costs across the mutual fund industry by ceaselessly campaigning in the interests of investors. Vanguard, the company he founded to embody his philosophy, is now one of the largest investment management firms in the world.”

So, here is to John (Jack) Bogle, founder of both Vanguard and the indispensably important index fund,  who died last week at age 89 for both making and saving literally BILLIONS of dollars for all of us average Joe and Jill investors like you and me.

Well done and thank you greatly, sir.

Dead at age 89, but whose spirit will live on forever.

RIP

I’d love to hear from any and all of you about your thoughts, so we can all learn from one another.

Please spread the word about this blog to your friends (real and virtual), family, and colleagues. Talk to you soon.

Until next time…