Posted by on Jan 18, 2019 in Articles & Advice, Blog, Featured |

Image Credit: Emanuel Leutze, “Washington Crossing the Delaware” (1851), Metropolitan Museum of Art


By Jason Zweig | Jan. 18, 2019 6:59 a.m. ET


While Jack Bogle is known for driving down costs for investors, that still understates his contribution to finance. He should also be remembered as the inventor of total return and the mutually owned fund company.

Until the mid-1970s, it was nearly impossible for individual investors to capture both market appreciation—the rise in share prices—and dividend income. Not only did most investors fail to beat the market; few could even match it.

Incredible as it seems today, some mutual funds charged commissions to reinvest dividends; if you wanted to plow a fund’s income back into more shares of the fund, you often had to pay a toll of 4% or more. Brokerage accounts were so clunky and costly that investors in individual stocks often didn’t reinvest dividends at all.

With two mighty blows—the invention of the index mutual fund and the elimination of fund commissions—Mr. Bogle smashed that antiquated system....



To read the rest of the article:



For further reading:


John C. Bogle, Stay the Course: The Story of Vanguard and the Index Revolution

John C. Bogle, Common Sense on Mutual Funds

Benjamin Graham, The Intelligent Investor

Jason Zweig, The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money

Articles and other research:


Bogle: Still Scolding After All These Years

A Golden Oldie: The Bogleheads