are individual investors doing?
individual investor returns to market averages tells a sad tale.
Over the past 20 years, investors have lost 60% of their
investment returns due to:
investment industry's focus on gathering
new investment funds, instead of growing
and expenses that have not
come down to match economies of
scale or competition;
management that chases short term
results, often jumping on the
bandwagon when it's too late.
chart shows how the average Stock
Market Index Fund closely matched
the Stock Market average return over
20 years, while the Average Fund
(including actively managed funds) lost
1/3 of its return to fees and
owning the wrong investments. The
average, using timing and chasing
"what's hot" lost 60% of the
returns available to them in the
testimony before Congress, John
Bogle discussed how active investors lost their
most fund investors have not been given
a fair shake."
the text of John Bogle's comments before Congress »