![]() ![]() ![]() Because the costs of mutual funds vastly outstrip those of index funds, Bogle argues that mutual funds deliver reduced returns, and those losses compound over time-a fact reflected in both historical data and future projections.Īs the founder of the Vanguard Group, one of the world’s largest investment firms, Bogle himself created the world’s first index fund in 1975, which tracked the S&P 500-a stock market index containing stocks of the 500 largest companies in the US. In his 2017 book, The Little Book of Common Sense Investing, Bogle outlines the reasons why investors typically make more money with index funds than the primary alternative-actively managed mutual funds. (Shortform note: While Bogle frames this as a book for new investors, his arguments and explanations may be advanced for anyone with little or no prior knowledge of the stock market.) ![]() Amidst this chaos, Jack Bogle argues that the winning strategy for novice investors is simple: Invest in traditional index funds and hold them indefinitely. There are various companies vying to manage investors’ money while platforms like Robinhood that encourage expedient day-trading entice investors with the possibility of quick profits and beating the market. 1-Page Summary 1-Page Book Summary of The Little Book of Common Sense Investing ![]()
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