“This conclusion is generated almost entirely from the fact that the sales charges, advisory fees, and portfolio turnover costs involved in mutual fund investing must inevitably cause actively managed investments in the aggregate to fall short of the market as a whole.” – John “Jack” Bogle
“Never, never, never invest in a bond fund without knowing its expense ratio.” – John “Jack” Bogle
“If the stock market in the 1900s offers annual returns well below those of the 1980s, intelligent investors simply cannot disregard the heavy burden of cost endemic to most actively managed funds, and clearly should consider index funds for at least a core portion of their equity holdings.” – John “Jack” Bogle
“To the victors—the shareholders of the lowest cost funds—belong the spoils.” – John “Jack” Bogle
“The fact is that costs still matter, today as in 1875.” – John “Jack” Bogle
“Mr.Buffett says his favorite holding period for a stock is ‘forever.'” – John “Jack” Bogle
“In the long run, it is dividend yields and earnings growth that are the fundamental driver of stock returns.” – John “Jack” Bogle
“Investors buying hot funds, experimenting with market timing, and shopping and swapping funds with untoward frequency in the supermarket casinos will one day learn by painful experience that these short-term approaches have been not only unproductive, but counterproductive.” – John “Jack” Bogle
“Picking the winning fund is virtually impossible, because reliance on past performance is of no apparent help.” – John “Jack” Bogle
“Costs matter. Costs always matter, and that is why active managers as a group can never win.” – John “Jack” Bogle
“There is a critical difference between creating a product that sells, and creating an investment that serves.” – John “Jack” Bogle
“Own Stocks, the Course to Stay; Hold Bonds, for They Will Pay; Keep Cash Reserves for a Rainy Day.” – John “Jack” Bogle
“Owning an all-market index fund, simply put means buying businesses-in essence, every publicly held business in America-and holding them for Warren Buffett’s favorite holding period: Forever.” – John “Jack” Bogle
“Ironically enough, equity indexing may well prove to work more productively in inefficient markets than in efficient markets.” – John “Jack” Bogle
“Indexing, it turns out, works-as it must—with high effectiveness in all the far-flung corners of the world of equity investing.” – John “Jack” Bogle
“Managers in short, have been bearish when they should have been bullish, and bullish when they should have been bearish.” – John “Jack” Bogle
“In return, however, indexing provides an “odds on” bet that an investor can outpace most other equity funds, and a virtual guarantee that his performance will never be at the bottom of the deck.” – John “Jack” Bogle
“The broader the diversification, the lower the specific risk. In the ideal portfolio (the all-market index fund) all specific security risk is diversified away.” – John “Jack” Bogle
“It will hardly surprise you that I’d realize that goal by owning the broadest-possible cross-section—a total stock market index fund.” – John “Jack” Bogle
“Sooner or later, the rewards of investing must be based on future cash flows.” – John “Jack” Bogle