John Bogle, 'father of index investing,' dies at 89 | News Coverage from USA

John Bogle, ‘father of index investing,’ dies at 89

John Bogle, the founder of the Vanguard Group who revolutionized investing by inventing the index fund, a product that gave Main Street investors a cheap way to gain broad exposure to the stock market, has died. He was 89.

Often dubbed the “father of index investing,” Bogle — a champion of the individual investor — was the driving force behind the shift away from a beat-the-market mentality and high-cost funds run by stock pickers that have reshaped the industry. More than 40 years after its birth, the index fund has led to today’s preference for so-called “passive” investing, a strategy that enables investors to buy a diversified basket of stocks with low expenses with a goal of matching the returns of a broad market index like the Standard & Poor’s 500.

“Don’t look for the needle in the haystack,” Bogle would famously say. “Just buy the haystack.”

Bogle, who started Vanguard in 1974 and then founded what is now known as the Vanguard 500 Index Fund amid ridicule from the Wall Street establishment who referred to the fund as “Bogle’s Folly,” has been called a “hero” by billionaire investor Warren Buffett.

“Jack Bogle made an impact on not only the entire investment industry, but more importantly, on the lives of countless individuals saving for their futures or their children’s futures,” Vanguard CEO Tim Buckley said in a statement on Wednesday. “He was a tremendously intelligent, driven, and talented visionary whose ideas completely changed the way we invest. We are honored to continue his legacy of giving every investor ‘a fair shake.’”          

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