The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  OT: Book recommendation Date:  8/26/1999  2:34 PM
Author:  zgriner Number:  13491 of 100371

Hi, Everyone

If you are lurking, wondering if putting your money into an index fund is really such a good idea, check out this book.

"Common Sense on Mutual Funds" by John C. Bogle (Founder & Senior Chairman of Vanguard) is a thorough, if not long-winded, analysis of the performance of managed mutual funds vs. index funds. Even though he knocks the Foolish Four (p. 139), the relevant arguments point to the fact that if you want a tax-advantaged, long-term, higher-performance, lower-risk, "invest & forget" stock investment, an S&P500 or Wilshire 5000 index fund is the way to go. This is what TMF advocates.

He basically proves that the mutual fund industry has become the market, and as a whole, will lag the return of an index fund because of their higher management and transaction costs.

He shows that picking next year's index fund beater is also difficult because very few funds are able to maintain performance from year-to-year.

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us