Ep1 - "The Bogle Effect" by Eric Balchunas (2022), Summarized by Ian Gates [PILOT]

To join the conversation, please join the #BLUFFbooks group on LinkedIn (https://www.linkedin.com/groups/14326465), *or* email me at: ian.gates12@outlook.com.   

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📘 #BLUFFbooks : “The Bogle Effect: How John Bogle & Vanguard Turned Wall Street Inside Out & Saved Investors Trillions” by Eric Balchunas (p. 2022)>>>Big💡IDEAS Below ⬇️
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1. Who’s Your Daddy? 👴 🧗‍♀️ 🐕 📣

Bogle did not invent the index fund (contrary to popular belief) but he certainly raised it into the juggernaut it is today.

He was willing to fight like a bulldog, preach to anyone, do the long tedious research work to make it available to the average joe.
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2. Costs Matter! 🗑️ 🪙 ⛽️ 💦 🪣 🐜

Bogle’s Vanguard index funds massively undercut a stock market that was accustomed to charging disgusting fees in exchange for chronic underperformance.

Because of him, all mutual fund companies have had to slash their fees just to keep up. The difference between a .05% (five basis point) and a .5% (fifty BP) expense ratio is HUGE (ex: $19k vs. $2k in fees charged for $20k invested 30 years at 7% annual return).
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3. By The People… 👵 👷 🧑‍🏫 👮‍♂️ 👨‍🚒 👨‍⚖️ 👩‍🎨 —

Vanguard’s being owned by its investment account holders is why I invest there. Charles Schwab belongs to the owners of its publically traded stock, & Fidelity Investments belongs to the wealthy Johnson family.

Bogle’s choice to make Vanguard an investor-owned cooperative was more of a “scorched earth” ☢️strategy in the midst of corporate boardroom warfare — rather than the noble idealism he later took credit for. But the positive impact is undeniable nonetheless.
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4. Don’t Just Do Something — Stand There!! 🦥 💂 🤖 😴

Bogle’s other great innovation was harnessing the power of inaction (aka “status quo bias.”)

By automating monthly contributions to low-cost index funds, the average Joe can confidently accumulate a huge next egg in his sleep while snobby Wharton grads spin their wheels running active funds.

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*This post is for general educational purposes only. This is not business or financial advice, and is not tailored to anyone’s unique personal situation. All investing involves risk, to include loosing all your principle***