Index Funds are those that invest in an index instead of a particular stock. The Fund invests in all the stocks of an index in the same proportion.
Bogle, the 89 year old author of 13 books with the most recent one published in 2018- 'Stay The Course: The Story of Vanguard and the Index Revolution', breathed his last on Wednesday in Pennsylvania.
He is credited as the creator of wealth for scores of his investors, especially the Vanguard Group which has an AuM (assets under management) of over $5 trillion.
Warren Buffett aka the Sage of Omaha and a venerated investor calls Jack his Hero.
Buffett, the CEO of Berkshire Hathaway has paid rich tributes to Bogle in his annual investor letters. In a 2017 letter, Buffett writes of Bogle, "If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle."
In 2016, Buffett's letter reminds investors, "In his early years, Jack was frequently mocked by the investment-management industry. Today, however, he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me."
In his 2014 letter, Buffett asked investors to read Jack Bogle's The Little Book of Common Sense Investing.
"There are a few investment managers, of course, who are very good – though in the short run, it's difficult to determine whether a great record is due to luck or talent. Most advisors, however, are far better at generating high fees than they are at generating high returns. In truth, their core competence is salesmanship. Rather than listen to their siren songs, investors – large and small – should instead read Jack Bogle's The Little Book of Common Sense Investing," says the letter.
Bogle's book Clash of Cultures finds a mention in Buffett's 2012 letter to investors.
The life of Bogle, who held the mantle at Vanguard Group as Founder in 1975 and then as its CEO until 1996, certainly has become a full circle. Also, the assets held by Vanguard in more than 170 countries and his rags to riches story with its trials and tribulations, is compelling to be narrated, re-told and shared.