Morgan in the Vanguard

This explains much:

A mutual fund is an investment fund that pools money from many investors to purchase securities. Walter L. Morgan founded W.L. Morgan & Company in 1925. In 1928 Walter L Morgan founded the Industrial & Power Securities Company that was the first balanced mutual fund in the U.S and began operations in mid-1929. The great crash began in October 1929.

An article about Walter L Morgan in the New York Times tells us ”There was so much speculation, and stocks were just too high” before the 1929 break in prices, he recalled in an interview with the Vanguard newsletter last summer.” Mr. Morgan’s fund, originally called the Industrial and Power Securities Company, sold United States Steel at $258 a share and watched the stock plummet to $24 as the Depression set in, he recalled.”

Another notable name from that period is Bernard Baruch who was a wealthy financier and broker on Wall Street and had a seat on the board of the New York Stock Exchange.. Baruch was an economic, industrial and foreign-policy adviser to eight presidents and used his wealth and influence to affect policy for a span of some 60 years.

As an adviser to President Franklin D. Roosevelt, Baruch helped shape the New Deal and the formation of the National Recovery Administration in 1933.. An article in the Independent Newspaper tells us that “Bernard Baruch was in his own way the George Soros of his day, a hugely successful speculator whose name alone had the power to move markets”.

After the great crash of 1929, the U.S. Congress passed a series of acts regulating the securities markets in general and mutual funds in particular. The Industrial & Power Securities Company became Wellington Fund Inc in 1935.

In 1970 Jack Bogle replaced Walter L. Morgan as chairman of Wellington. Bogle founded the Vanguard Group in 1974, retaining Wellington to manage some of Vanguard’s funds. Walter L. Morgan continued to work twice a week at his Vanguard office until he broke a hip in 1997. In July 1998, Vanguard named its main building in Valley Forge for Walter L. Morgam Morgan as part of a celebration of his 100th birthday.

We are told here that, “The $17 trillion global mutual fund industry can trace much of its success all the way back to Walter L. Morgan.”

In 2018 Vanguard and funds such as Blackrock, State street, and Fidelity, hold gargantuan ownership stakes in large firms – according to the Economist Group it is nearly 80% of the global market. The Vanguard Group & Other Large Facebook Shareholders are soon to vote on the Facebook privacy proposal.

The Vanguard Group is Twitter’s largest shareholder. “Institutional investors purchased a net $1.2 million shares of Twitter during the quarter ended March 2018, and now own 55.70% of the total float, a percentage that is typical for companies in the Internet Software/Services industry.”

Here are the Vanguard Group investments in numerous other companies.

Ken Craggs

https://twitter.com/BetweenMyths

3 comments for “Morgan in the Vanguard

  1. James Strong
    May 10, 2018 at 6:55 pm

    What does it explain?

  2. Pcar
    May 10, 2018 at 8:44 pm

    @James Strong,

    +1

    I was going to ask same.

    Reads like a copy&paste PR release for a new book.

    It’s also rubbish. Mutual funds have existed in UK for hundreds of years eg Investment Trusts, Life Assurance, Lloyd’s of London

  3. May 11, 2018 at 6:00 am

    This style is hardly the point with Ken’s piece above, it’s the info heavy links which are his way.

    The point of the piece is to illustrate how the linked networks work and why policy turns out to be one way and not the other. It adds a bit of meat to the skeleton when someone asks, ‘But what proof do you have?’

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