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Barry Ritholtz

Jack Bogle's Indexing Revolution

The idea that changed investing.

In our latest Masters in Business podcast, we speak with Jack Bogle, founder of the $3.5 trillion Vanguard Group and creator of the index mutual fund.

Bogle started Vanguard in 1974 after being ousted as chairman of Wellington Funds following a failed merger. Bogle's indexing idea may seem like conventional wisdom today, but at the time it was revolutionary -- that a fund passively matching the broad market's returns would outperform almost all funds actively managed by stock pickers. Bogle said that Wall Street’s initial response to index funds was to ignore them, which explains why for many years Vanguard had no or little competition.