Inside Vanguard: Leadership Secrets From the Company That Continues to Rewrite the Rules of the Investing Business

CAHPTER 3

TROUBLES BREWING

As Bogle had intended, after the merger Wellington Management Company got more aggressive in sales and also changed its investment approach. “The merger was working well,” recalled Bogle. “The best illustration was in Ivest Fund’s sales, which got 70 percent of all our new sales in 1968.” Ivest’s assets surged from $1 million at the end of 1961 to $50 million at the end of 1966, and further grew to $340 million by the end of 1968.

Doran and Thorndike were surprised to discover that Philadelphia, contrary to their initial expectations, actually had considerable investment talent. Still, certain that an unstructured, interactive organization would be more successful at creative investing, they were keen to reorganize ...