On March 22, 2015, I made a post titled: "The market portfolio is the most sensible decision -- Jack B." In that post I quoted from Jack's speech "The Telltale Chart" in which Mr. Bogle discusses heavily promoted "slice & dice", small-cap stocks, value stocks and the validity of early statistics. He concluded (underline mine):
I ran a comparison of an investor who, 15 years ago, followed Jack's advice and invested $10,000 in Vanguard Total Stock Market Index Fund (VTSAX) and compared it with an investor who put the same amount in DFA Small-Cap Value Fund (DFSVX). This is the ending portfolio value for each investor -- a HUGE difference (more than the original investment):Like Dr. Fama, I believe that the market portfolio is the most sensible decision. It takes the need for judgement out of your decision making; it reduces costs; it increases tax-efficiency; it avoids the need to pore over past market data to figure out why the data are what they are. Then, if you accept the data, you have to decide whether or not the patterns it has revealed will persist during the span of years remaining on your investment horizon."
Bill Bernstein quote: "When I disagree with Jack Bogle I am usually wrong."
Jack Bogle's Words of Wisdom: "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk. -- "Never think you know more than the market. Nobody does."