John C. Bogle emphasizes that low-cost index funds consistently outperform actively managed funds over the long term. By tracking a broad market index like the S&P 500, these funds minimize fees and transaction costs, ensuring investors capture nearly the entire return generated by businesses. Bogle states, 'If the managers take nothing, the investors receive everything: the market’s return.' This approach mitigates the risks associated with individual stock selection and market timing, making it a reliable strategy for most investors. | John C. Bogle | The Little Book of Common Sense Investing

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The Power of Low-Cost Index Funds

John C. Bogle emphasizes that low-cost index funds consistently outperform actively managed funds over the long term. By tracking a broad market index like the S&P 500, these funds minimize fees and transaction costs, ensuring investors capture nearly the entire return generated by businesses. Bogle states, 'If the managers take nothing, the investors receive everything: the market’s return.' This approach mitigates the risks associated with individual stock selection and market timing, making it a reliable strategy for most investors.

-- John C. Bogle