Since active managers as a whole can’t achieve returns that exceed market returns, their returns (after fees are deducted) must, taken as a whole, underperform the stock market. Beating the stock market is therefore a zero sum game for all outperformers, there must be corresponding underperformers. By definition, all investors, taken together, earn the stock market’s return (before fees are deducted). Bogle’s primary weapon is arithmetic, and he wields it effectively. Instead, Bogle’s presents a clear message: the vast majority of investors should target the market return and ignore the cost-laden, inconsistent strategies preached by active fund managers. There are no get-rich-quick proclamations or vague anecdotes presented as “proof” of successful investment strategies. The Little Book of Common Sense Investing is an ideal starting point for anyone wishing to expand their financial literacy. Bogle’s crusade against misinformation in the investment industry is concisely summarized in his 2007 classic (revised in 2017) The Little Book of Common Sense Investing. Perhaps Bogle is occasionally overlooked because he did not focus on the allure of excess returns, but rather the tyranny of excessive fees. Jack Bogle doesn’t have the same level of name recognition as investment gurus like Warren Buffett and Benjamin Graham, but he has likely done more for the average investor than any of his more famous counterparts.
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