We Study Billionaires - The Investor’s Podcast Network

TIP743: Should Value Investors Own Index Funds?

35 snips
Aug 8, 2025
Discover how John Bogle revolutionized investing with his philosophy on low-cost index funds, making investing accessible to millions. Learn why most active mutual funds struggle to beat the S&P 500 and how fees can silently chip away at your gains. Explore the ease of holding index funds during market downturns, making them a reliable option for investors. The discussion also touches on future market returns and why simple strategies often outperform complex ones.
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INSIGHT

Bogle's Market Ownership Insight

  • John Bogle showed that owning the entire market through an index fund beats trying to beat it.
  • Most active investors underperform the market due to fees and human behavior.
ANECDOTE

Gotrocks Family Indexing Parable

  • The Gotrocks family owned all U.S. stocks but lost wealth due to costly trading and taxes.
  • Their wealth grew again only after returning to passive index investing.
ADVICE

Minimize Fees to Maximize Wealth

  • Avoid high fees; even 1% fees can cost hundreds of thousands over decades.
  • Choose low-cost index funds to maximize long-term investment returns.
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