John Bogle is the founder and former CEO of The Vanguard Group. He is considered one of the pioneers of the mutual fund industry. He founded the Vanguard 500 Index Fund in 1975 which is widely considered the first index mutual fund. Bogle is famous for his insistence in his numerous books on the superiority of index funds over traditional actively-managed mutual funds. He believes that actively managed mutual funds cannot beat a well run index fund over a long period of time.
If anybody has the truly long view on retirement investing, it’s Vanguard Group Founder John Bogle. He has retired from his own firm but definitely is still in the fight, by his reckoning well over a quarter century now trying to get retirement investment advisors to do what they say and be legally bound to follow through.
John Bogle Jr., however, decided not to follow in his father's footsteps. He began his career in engineering, then switched to investment banking, eventually running his own mutual fund based on a quantitative strategy (one based on "pairing earnings surprises, reasonable valuations and financial clarity"). In 2006, Morningstar gave the Bogle Small Cap Growth Fund () honorable mention as one of its . I thought it would be an interesting exercise to see how John Jr. did in his "quest for alpha."
John Bogle is one of the good guys in the industry with his head in the right place and his understandings in a smart place. Although I don’t love the idea of passive vs active (I personally think we’re all varying degrees of active so the idea of a “passive investor” is a little misleading), but the message should be clear – fees can make a huge difference in your overall performance and should be one of the primary factors that go into how you choose a manager….