The fee is the management fee for mutual funds, which were clustered in the ~2% region when they were principally actively managed by stock pickers who purported to deliver above-market performance. This promise was not true. Bogle popularized a better product costing 10 bps.
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The difference between 2% and 10bps is approximately a quarter of the returns to capitalism, which compounded over a 35 year working career work out to about 2X difference. (Being somewhat handwavy on the math in the interest of general legibility.)
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And if his name isn't new for you, his work may have led to your having a better, more practical understanding of the finance industry for people outside it—an industry which benefits from its customers not understanding it.
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I read his Boglehead book years ago and it did more to help me understand investing than anything else. Granted, I am a Vanguard customer who is just getting started and have had a few periods of non investing to pay off debt, to plow into my own business, and more. Eye opening.
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and if you still don't know him he was also the founder of Vanguard, which may ring a bell
Thanks. Twitter will use this to make your timeline better. UndoUndo
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It’s a good lesson in life to eliminate the high priced soothsayers speaking in fancy tongues that will tell you you need them when they don’t actually add any value. So many industries are infiltrated/ captured by them.
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If the fees were really there for no good reason, we don’t have to thank Bogle. Capitalism ensured that if Bogle didn’t slash the fees, someone else would have. The we’d be invoking great man theory to thank them instead.
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You can expect collusion to have dramatically slowed down that transition. Look at credit card fees charged by banks to SMBs for the privilege of being paid with AMEX/Visa/MC
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