Investment Strategy
Bogle is famous for his insistence, in numerous media appearances and in writing, on the superiority of index funds over traditional actively-managed mutual funds. He believes that it is folly to attempt to pick actively managed mutual funds and expect their performance to beat a well-run index fund over a long period of time.
Bogle argues for an approach to investing defined by simplicity and common sense. Below are his eight basic rules for investors:
- Select low-cost index funds
- Consider carefully the added costs of advice
- Do not overrate past fund performance
- Use past performance to determine consistency and risk
- Beware of stars (as in, star mutual fund managers)
- Beware of asset size
- Don't own too many funds
- Buy your fund portfolio - and hold it
Read more about this topic: John C. Bogle
Famous quotes containing the words investment and/or strategy:
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