Chapter
The Trouble with Mutual Funds
10:38 - 14:01 (03:23)
The average person's 401K portfolio is at risk due to the difficulty in choosing the right mutual fund, and evaluating them based on past performance can lead to poor returns. According to Bogle, the average mutual fund owner over the past 20 years made a net return of just 2.5%.
Clips
The chances of selecting the right mutual fund for investment are very low, leading to poor performance and significantly higher costs compared to index funds, which have proven to be more successful.
10:38 - 12:57 (02:19)
Index funds
Summary
The chances of selecting the right mutual fund for investment are very low, leading to poor performance and significantly higher costs compared to index funds, which have proven to be more successful.
ChapterThe Trouble with Mutual Funds
EpisodeEp 38: Tony Robbins (Part 2) on Morning Routines, Peak Performance, and Mastering Money
PodcastThe Tim Ferriss Show
John Bogle emphasizes that evaluating a mutual fund based on past performance is not accurate.
12:57 - 14:01 (01:04)
Mutual Funds
Summary
John Bogle emphasizes that evaluating a mutual fund based on past performance is not accurate. He found that over a 20-year period, the average mutual fund owner only earned a net return of 2.5% and that the average person's money isn't even in the index today.