Jack Bogle became a financial legend not by knowing how to play the market, but by knowing that no one knew how to play the market.
The founder of Vanguard, who died at the age of 89 last year, was called the father of the index fund. The concept was simple: If we know the market is going up, why don’t we just buy the market? Don’t mess around with individual stocks; take the safest route available, preferably with dollar cost averaging, and relax. Or as Bogle put it: “Don’t look for the needle in the haystack. Just buy the haystack.”
“Just buy the haystack” is Jack Bogle’s legacy
The Vanguard Index Fund, introduced in 1976, has generated an 11% average annual return. But the real payoff is how it has transformed the market: It’s estimated that 43% of all stock funds are now index funds. That means nearly half of the market is made up of people who bought the haystack. Isn’t it time to join them?