For many Peter Lynch or Buffett are the two main heroes of the investing world… I do have another one that is not mention often. Actually, to me, he’s my favorite and that is John Bogle. John Bogle was the founder of Vanguard which I mention before and which I will continue is the second largest mutual fund in the world. Bogle revolutionized the world of mutual fund. He is the father of indexing (passive strategies). He wanted to have lowest MER for mutual fund. For example, today, to track the Total Stock Market Index cost .15%

But when it first started in 1976, the cost to track the index was a bit lower than 1%…so how did he went from 1% to .15%? He just build a company where the investors of mutual funds became the actual shareholders of the funds. More there are shareholders, cheaper it cost to run the fund so the cost can go down… simple no? For the first time, and still is today, the mutual funds are “ACTUALLY” mutually owned. Now that to me is great investing thinking.

John Bogle, even though he created a firm where the assets managed is worth $1 Trillion, is far from being the richest man in the world. Is fortune is estimated to about $20M compared to Fidelity founders at $7Billion. We should all thanks this guy to sacrifice a lot of possible wealth and give all investors a chance to buy mutual funds at the lowest cost possible.

Did I forget to mention that the VTI ETF which also tracks the total market index cost .07%?

Here’s a great quote from Bogle which simply says to buy the Market and forget about finding those special gems that will help you beat the market which on the long-run, less than 10% can actually beat it: