Costs matter when it comes to investing from "summary" of John Bogle on Investing by John C. Bogle
The impact of costs on investment returns cannot be overstated. The simple truth is that costs matter when it comes to investing. Every dollar paid in fees and expenses is a dollar less in returns for the investor. This may seem obvious, but it is a concept that many investors overlook or underestimate. Even seemingly small differences in costs can add up significantly over time. For example, a 1% difference in annual expenses may not seem like much, but over the course of several decades, it can result in a substantial reduction in returns. High costs erode the power of compounding, which is the key to long-term investment success. Investors must be vigilant about minimizing costs in order to maximize their returns. This means paying close attention to management fees, sales charges, and other expenses associated with investing...
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