Eric Balchunas - The Bogle Effect: How John Bogle and Vanguard Turned Wall Street Inside Out and Saved Investors Trillions

We are on the threshold of a new era, one in which the power of large numbers beats expertise. Where network effects and mass distribution overwhelm traditional structures of authority. To fully understand it, one must go back to Jack Bogles revolution, the effects of which are only now beginning to be felt everywhere. Let Eric Balchunas be your guide as we leave behind the old world and go charging into the new one.

Downtown Josh Brown, CEO of Ritholtz Wealth Management, star of CNBCsThe Halftime Report

Eric Balchunas has not only written the definitive professional biography of John Bogle, but he has done so with a penetrating honesty and narrative grace rare in the genre. Read, enjoy, and, most important, absorb the wisdom of the most important investor ever to have lived.

William J. Bernstein, author of The Four Pillars of Investing and A Splendid Exchange

Balchunas has written a rare beast: a delightful read that humanizes one of the icons of finance, while at the same time providing a meaty argument for how our modern financial world has been shaped by the genius, goodness, luck, and perhaps arrogance of one man.

Dave Nadig, Director of Research and CIO, ETF Trends and ETF Database

A riveting story of a once in a lifetime, transformational figure for the fund industry. A candid look at the birth of passive investing and its subsequent revolution.

Aye Soe, Head of Product, S&P Dow Jones Indices

Eric Balchunass The Bogle Effect is a powerful and captivating exploration of how John Bogle and Vanguard revolutionized the entire financial industry. A must-read for Wall Street beginners and veterans alike.

Arthur Levitt, Former Chairman, the Securities and Exchange Commission

Thanks to Jack Bogle, theres no longer any dumb money in the stock market. Also thanks to Jack Bogle, the smart money has to work that much harder to prove theyre worth the fees they charge to beat the market. In The Bogle Effect, Eric Balchunas expertly shows how Jack Bogle built Vanguard into the Amazon of the asset management industry: a disruptive, disintermediary and deflationary force thats left its competitors scrambling. This is a must-read for anyone wondering how buy and hold became a winning strategy.

Scarlet Fu, Quicktake Anchor, Bloomberg, and senior markets editor, Bloomberg Television

Balchunas provides one of the first ever exhaustive looks behind the veil of the high fee asset management business and the dramatic impact that John Bogle played (and still plays) in saving the retail investor billions of dollars. This is a must read for anyone who wants to understand the past, present, and future of the asset management world and portfolio management.

Cullen Roche, Founder, Discipline Funds

The Bogle Effect will change the way you look at the financial industry forever. Balchunass insights give readers a fresh and unique look at how Bogle and The Vanguard Group revolutionized both portfolios and Wall Street. A must-read for all.

Mary Schapiro, Vice Chair for Global Public Policy, Bloomberg, and Former Chair, US Securities and Exchange Commission

Jack Bogle did more for investors than anyone else, ever. He was brave enough to wave a pirate flag, take on Wall Street, and change the world. And no one will help you appreciate Bogles radical simplicity quite like Eric Balchunas.

Joel Weber, Editor, Bloomberg Businessweek

Jack Bogle is famous and reveredbut not nearly as famous and revered as he should be. Eric Balchunass new book should help on both counts. Read it and learn. Read it and be amazed what one determined man did for the average investor.

Alan Blinder, the Gordon S. Rentschler Memorial Professor of Economics and Public Affairs at Princeton University and Former Vice Chair of the Federal Reserve

The Institutional ETF Toolbox (2016)

The following work is presented for informational and entertainment purposes only. The material herein is not intended as a substitute for professional financial advice. Although best efforts have been made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur. The author and publisher do not assume and specifically disclaim any liability to any party for any loss or damage, direct or indirect, incurred as a result of the use of information contained within this book, including, but not limited to, errors, omissions, or inaccuracies.

Please remember that past performance is no guarantee of future results. Individuals should carefully research their own investment decisions and seek the advice of a professional where appropriate.

The Bogle Effect copyright 2022 by Eric Balchunas

All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission of the publisher, except in the case of brief quotations embodied in critical articles or reviews.

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First E-Book Edition: April 2022

Library of Congress Cataloging-in-Publication Data: 2021049927

ISBN 9781637740712 (cloth)

ISBN 9781637740729 (ebook)

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To my grandparents, Joe, Aldona, Dan, and Pat (and the rest of the World War II generation)

I didnt expect to learn much from this book.

Thats the honest truth.

Having spent twelve years in the ETF industry, I knew the story of John Jack Bogle well: his early days at Wellington, his split to form Vanguard, the subsequent growth. As CEO of ETF.com, I had the pleasure of interviewing Bogle multiple times; I even edited a number of articles he wrote for The Journal of Indexes, arguing with him over word choice.

Jack is also a personal hero of mine. Ive read his books, studied his speeches, and use him as a north star when making decisions. What more could I learn about a man I consider one of the greatest Americans?

But Eric is a good friend and a great writer, so when he asked me to read his book, I obliged.

I was blown away.

The thing that separates good biographies from great biographies is simple. Good biographies tell us what happenedthe upbringing, early career, and formative moments in the lives of our leaders. This book does that well, bringing stories to life that even I didnt know.

But great biographies gaze forward, weaving threads from a persons life and accomplishments to craft a tapestry of what lies ahead.

And here, in Erics hands, Bogles story is transformed.