" />
Post a Comment Print Share on Facebook

Crusaders of the small investors

"it was My idea, so banal, that you can't even speak of an idea," said John Bogle. "The cost to decide whether the investors make money for themselves or th

- 17 reads.

Crusaders of the small investors

"it was My idea, so banal, that you can't even speak of an idea," said John Bogle. "The cost to decide whether the investors make money for themselves or the Fund managers rich." It was a stone-cold Vorfrühlingstag, and in front of the entrance of the Vanguard Group, was flying a Swiss Flag in the Wind. "No, I am sorry. The Flag we have raised for them," he explains to the correspondent. "She is upstairs, because we are under siege."

That was in February 2004, and John "Jack" Bogle celebrated a nice anniversary. 30 years earlier, he had created the Vanguard index trust is one of the very few innovations in the financial industry that took advantage of the small investors. The entrepreneur Warren Buffett was an early admirer: "Jack was teased at the beginning of the Investment industry often. But today he can say with some satisfaction that he has helped millions of investors to achieve far better yields than they otherwise would have achieved. For you he is a Hero; and he is also a Hero for me."

Without expensive middle men

the basis for the success of the index Fund on the 500 largest US companies that allowed small investors for the first time, was wide-ranging in the stock investing market. Vanguard has not been offset only to a depth of commissions, but sold the Fund directly to the investor and took out the expensive middle men. In addition, Bogle, made Vanguard to a not-for-profit cooperative. The investors are co-owners. Bogle was a rap cleaver, and he was proud of it. He would have been able to make a billion in assets, such as Edward Johnson from the arch-rival Fidelity. However, Bogle put in Vanguard funds, and made a comparatively modest $ 80 million.

The Swiss Flag he had on that day for personal reasons, to hoist. She reminded him of a conflict with the first employer, the Wellington-Fund-group. Bogle had to leave the company because he charged himself with the founder because of the high commissions had fallen out of investors. "With the Swiss Flag I wanted to show that our company belongs to all investors or just the people and not the managers, who have very different interests." His voice was cutting. "It is frightening to see what has become of our industry," lectured Bogle in his office, the kind with the paper-Laden tables and an old Sofa with embroidered pillows recalled the living room of a Professor. His Image was indifferent to him. "I've never seen myself as a businessman rather than a missionary or a Crusader." This explains why he had Vanguard according to one of the battle ships of the British Admiral Nelson in the war against Napoleon named.

in 1996, withdrew Bogle as head of the company, and hoped to be Chairman of the Board. The desire has struck him, what hurt him. For this, he distinguished himself increasingly as a critic of the Fund industry. To The Right. Dozens of Fund companies in the United States were transferred after the Crash of 2000 of fraud. They had several million investors with illegal machinations betrayed and had to finally pay reparations of hundreds of millions of dollars.

"I am sorry. The Flag we have not ufgezogen because of you. She is on top, because we are under siege."John Bogle in February, 2004

The older, was the more uncomfortable Bogle. "It is a truism, but it is too little known: America is controlled by the economy," he said in a later interview. "I'll give you an example: Institutional investors and professional money managers control two-thirds of the capital in the United States. You are in a permanent conflict of interest, because they create the money of those companies and pension funds, whose shares they control, in turn, collectively. The Problem is indeed in the negative on all sides; but no money Manager, is against the interests of Corporate America." His followers compared him sometimes, with Moses, have been shown under the lightning and the Thunder of the financial industry the truth.

estimates show how influential he ultimately was. With the cheap Vanguard funds should have saved dieAnlegerüber the years, at least 175 billion dollars. The pressure to lower costs will be added to other Fund companies, so the savings are expected to reach against a trillion dollars.

Bogle passed away this week at the age of 89 years. Already at the age of 31 he had an inherited heart defect multiple heart attacks. Against the urgent advice of Doctors, he continued tirelessly, and later underwent heart transplantation. His wife believe him because of his workaholism was crazy, he admitted in 2004. "I don't know what keeps me going. Maybe it is the fear of death. Perhaps the loneliness."

(editing Tamedia)

Created: 17.01.2019, 21:24 PM

Avatar
Your Name
Post a Comment
Characters Left:
Your comment has been forwarded to the administrator for approval.×
Warning! Will constitute a criminal offense, illegal, threatening, offensive, insulting and swearing, derogatory, defamatory, vulgar, pornographic, indecent, personality rights, damaging or similar nature in the nature of all kinds of financial content, legal, criminal and administrative responsibility for the content of the sender member / members are belong.