Vanguard's founder, Jack Bogol, is known for investing for the average person through index funds – funds that match the market barometer like the S & P 500. His message was simple: why do you waste money on expensive fees and commissions complex funds when market barometers often exceed them? This message remains remarkably consistent throughout his career.
Jack Blog needed a huge amount of brains and market knowledge to collect the first index fund. But for investors who want to gain from his idea, it becomes quite easy.
In 1975, the founder of the Vanguard Group, who died on Wednesday, was able to turn long-standing faith into reality, that it is far more profitable to follow the market than to fight it. Most mutual fund managers who chose shares failed to deal with core indicators like the S & P 500, and even less would have found them.
So he turned his mind into action, gathered the first fund that just followed the S & P 500, minus the small management costs that were much cheaper than the day's active means.
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