The Johnson family’s journey to building Fidelity Investments into a global financial powerhouse is a tale of perseverance and success. From humble beginnings, the Johnson family’s legacy was rooted in their mother’s belief in the power of saving and investing. Over the years, Fidelity has navigated market crashes, pioneered the rise of index funds, and the leadership of Abigail Johnson has helped to shape the company’s future. Today, Fidelity is one of the largest financial services companies in the world, with over $2.4 trillion in assets under management.
The Johnson Family: From Humble Beginnings
The Johnson family’s journey to building Fidelity Investments began with humble beginnings. Edward C. Johnson II, the founder of Fidelity, grew up during the Great Depression and learned the importance of saving and investing from his mother. He started his career in finance in 1943, working as a retail broker for the Boston-based investment firm, Hayden, Stone & Co. With his wife’s support, he decided to start his own investment firm in 1946.
A Mother’s Legacy: The Roots of Fidelity
The Johnson family’s legacy was rooted in their mother’s belief in the power of saving and investing. Edward C. Johnson II’s mother, Fidelity, was a schoolteacher who instilled in him the importance of saving and investing. She believed that investing in the stock market was the key to building long-term wealth. Her name became the inspiration for the company that her son would go on to found, Fidelity Investments.
Bold Moves: The Early Years of Fidelity
In the early years of Fidelity, the company faced many challenges. The 1970s were a particularly turbulent time for the financial industry, with high inflation and a stagnant economy. Despite these challenges, Fidelity continued to grow, thanks to the bold moves made by the Johnson family. In 1977, Fidelity introduced the first money market fund in the US, which quickly became a popular investment option for savers looking for a safe place to park their cash.
Turmoil and Triumph: Navigating Market Crashes
Fidelity has navigated several market crashes over the years, including the Black Monday crash of 1987, the dotcom bubble of the late 1990s, and the 2008 financial crisis. Despite these challenges, Fidelity emerged stronger each time, thanks to its conservative investment approach and its focus on long-term growth. The company’s commitment to its clients and its employees helped it weather these storms and emerge as a leader in the industry.
The Rise of the Index Fund: A Game-Changer
The rise of the index fund was a game-changer for Fidelity. In 1984, the company launched its first index fund, the Fidelity Spartan 500 Index Fund. This fund was designed to track the performance of the S&P 500 index and offered a low-cost alternative to actively managed funds. Today, Fidelity is one of the largest providers of index funds in the world, with over $1 trillion in assets under management.
Women in Finance: Abigail Johnson’s Leadership
Abigail Johnson, the granddaughter of Fidelity’s founder, has been an instrumental part of the company’s success. She became Fidelity’s CEO in 2014, making her one of the most powerful women in finance. Under her leadership, Fidelity has continued to innovate and grow, launching new products and services to meet the needs of its clients. Johnson has been recognized for her leadership and was named one of TIME’s 100 most influential people in the world in 2018.
Fidelity Today: A Global Financial Powerhouse
Today, Fidelity is one of the largest financial services companies in the world, with over $2.4 trillion in assets under management. The company has a global presence, with offices in over 25 countries around the world. Fidelity offers a wide range of investment products and services, including mutual funds, index funds, ETFs, and more.
Innovation and Technology: A Look into the Future
Fidelity’s commitment to innovation and technology has helped it stay ahead of the curve. The company has invested heavily in technology, launching new tools and services to make investing easier and more accessible for its clients. Fidelity has also been at the forefront of the cryptocurrency revolution, launching its own cryptocurrency fund in 2018.
The Johnson Family’s Philanthropic Legacy
The Johnson family’s philanthropic legacy has been an important part of the company’s success. Fidelity has a long history of giving back to the community, supporting a wide range of causes and organizations. The Johnson family has also been instrumental in supporting education, with donations to schools and universities around the world.
The Impact of Fidelity on the Investment World
Fidelity’s impact on the investment world cannot be overstated. The company has been a pioneer in the industry, introducing new investment products and services that have changed the way people invest. Fidelity’s commitment to low-cost investing has helped to democratize investing, making it accessible to people of all income levels.
Lessons from the Johnson Family’s Journey
The Johnson family’s journey to building Fidelity Investments into a global financial powerhouse offers many valuable lessons. Their commitment to conservative investing, innovation, and putting clients first has helped them succeed in a highly competitive industry. Their philanthropic legacy is a testament to the power of giving back to the community.
The Fidelity story is a tale of perseverance and success, rooted in the Johnson family’s belief in the power of saving and investing. The company’s commitment to its clients, its employees, and its community has helped it grow into a global financial powerhouse. The Johnson family’s legacy serves as an inspiration to us all, reminding us that with hard work and dedication, anything is possible.
