John Bogle’s Vanguard Is A Famous “Failure”…

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This is according to his book, “Stay The Course: The Story of Vanguard and the Index Revolution”, John Bogle’s Vanguard Group, the creator of the first index fund, was a massive failure when its “First Index Investment Trust” was launched back in 1975.

The idea of the “index fund”, a fund that simply tracked the S&P 500 market, was almost universally rejected as a concept at the time.

Mr. Bogle describes how, one year after launching Vanguard, the company’s first IPO of the “First Index Investment Trust” raised only 5% of its initial goal of $250 million.

His competitors on Wall Street pointed and laughed.

The book describes how Vanguard’s fund struggled for years to gain traction…

But Mr. Bogle persevered through the rejection and survived the trough of sorrow

Now Vanguard represents over 50% of all index fund investments in the stock market with over $2.3 trillion invested.

Amazing what can happen when a good idea is put to work and compounded over 45 years!