The Bogleheads' Guide to Investing, 2nd Edition

Introduction

Do not value money for any more nor any less than its worth; it is a good servant but a bad master.

—Alexander Dumas fils, Camille, 1852

Contrary to what you may believe, a Boglehead is not one of those funny little dolls you occasionally see bouncing in the back window of a car in front of you. That’s a bobblehead.

Bogleheads are an entirely different animal. While less visible than bobbleheads, our legions number in the millions. We are investors who follow the philosophy and strategy of investing advocated by John C. “Jack” Bogle, founder of The Vanguard Group.

MEET OUR LEADER

What Jack Bogle has made possible for the individual investor is truly extraordinary. Thanks to his creation of no-load, low-cost, tax-efficient mutual funds, millions of investors enjoy significantly greater returns on their investment dollars than they otherwise would have. His introduction of the first index fund for retail investors was labeled Bogle’s Folly by its detractors. Today, that same fund, Vanguard’s 500 Index fund, is the largest mutual fund in the world. Thanks to Jack Bogle, more of each investor’s money is put to work for them instead of going into the pockets of brokers, fund managers, or the taxman. For the everyday investor this translates into items such as nicer homes for families, college educations for children, more enjoyable retirements for seniors, and more money to be passed on to loved ones and causes they care about. Although a few other investment fund ...