Past Perspectives Dateline Homepage Business People and Missionaries John Bogle, the founder and senior chairman of the Vanguard Group, one of the largest mutual-fund firms in the world, sees himself as a missionary in the mutual fund business. A maverick in the highly competitive, high-finance world of investing, Bogle turned seventy this year and must step down, according to the rules that he helped put in place. Fees and costs are seen as evil, and efficiency is extolled as a virtue. Value for clients is rewarded, and word-of mouth provides the necessary advertising. Vanguard is organized as a nonprofit mutual fund, and the company is owned by its customers.
Vanguard focuses on the people it serves and on the people who provide the services.
Layoffs of employees are intolerable. There are penalties to discourage market timers and traders who want only to make quick profits at the expense of other fund owners. Bogle and the Vanguard Company have been immensely successful in investment returns, cost savings, and continued growth. In a highly competitive world, they have succeeded with a focus on the people they serve. The company has continued to prosper.