In Investing, You Get What You Don’t Pay For
Remarks by John C. Bogle
Founder and Former Chairman, The Vanguard Group
The World Money Show
February 2, 2005
Orlando, Florida
I’m delighted to be here again to keynote this conference. One very important thing has changed since I last spoke here six years ago, and two vital elements have remained unchanged. That single critical change, and those two things that have remained the same, have revealed three of the eternal verities of investing, and I’m pleased to address both the change and the constancy.
What has changed, …

As the popularity of hedge fund strategies increases, the influence of these strategies in the traditional mutual fund world continues to grow. Once limited to only high net worth accredited individuals or institutional investors, many hedge fund strategies are now be deployed within mutual funds.
130/30 funds are one of these new mutual fund structures. The 130/30 structure differs from traditional mutual funds because the strategy allows managers to have both long and short exposure.
Most mutual fund managers can only have long positions. In a long only portfolio, managers purchase stocks in …

“Time is your friend; impulse is your enemy.” - John Bogle, Vanguard Group Founder 
“History shows that in the long run a thoughtfully designed, diversified strategy of “passive” funds typically beats all but a few active managers. It’s not easy to structure and maintain such a strategy. It requires some initial research and discipline to stay the course. But it’s much easier than predicting which active managers will randomly beat this approach.” - Eugene Fama, Jr., DFA
When investing passively for the long term, it is crucial to choose a wise investment …