Allen S. Rout

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Inspiring business role model

In 1974, John Bogle founded the Vanguard Group. Vanguard was built as a response to the strategy we now call "actively managed funds". Most fund companies employed a large staff of company and theoretical analysts. Bogle constructed funds that followed existing stock indices. He returned the expenses saved to clients as lower expenses.

Bogle sought to make things clear, in an industry where confusion was more profitable. Clients paid a premium for the work of active management, because fund companies worked to convince them that the right person could consistently pick winning stocks. This turns out to be untrue. Vanguard throve on the margin other companies wasted on that confusion. In 2000 a Vanguard fund following the S&P 500 overtook the Magellan fund to become the largest mutual fund.

In a similar manner, I am learning to simplify my writing. I am seeking to be simple and clear where I might prefer to be complex and precise. I am writing short sentences instead of long. I am repeating themes instead of developing them. I will need to do this in my work writing as well, if the habit is to take hold.

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