By John Bogle, patron saint of do-it-yourself investors |
I have a lot of respect for Vanguard founder John Bogle. Unlike every other financial services company at the time, Vanguard was set up to operate at cost, rather than to extract profits from account holders to funnel to its executives and shareholders. Vanguard's customers are its owners; it's a mutually-owned mutual fund company. If Bogle hadn't given up ownership of Vanguard, he'd probably appear in every Forbes List of Very Rich People ever published, and the rest of us would be that much worse off in retirement.
"The Little Book of Common Sense Investing" details Bogle's philosophy when it comes to investing in the stock market. It boils down to a few simple ideas: in aggregate, investors are the market, so in aggregate we can't beat the market. Costs matter; the returns you get are exactly what you don't pay for. Diversify as much as possible. And you can't buy past performance1, so don't try to time the market!