Take a passive approach to investing to capture market returns from "summary" of John Bogle on Investing by John C. Bogle
An investor who follows a passive approach does not attempt to outguess the market or to pick individual stocks that will beat the market. Instead, he or she is content to capture the returns that the market itself provides. This strategy is based on the belief that, over the long term, the market is an efficient mechanism for determining the fair value of securities. By investing in a broad-based market index fund, the investor can participate in the overall performance of the market. Attempting to beat the market through active management is a difficult and uncertain task. While some investors may achieve success in the short term, the vast majority will fail to outperform the market over the long term. The costs associated with active management, including higher fees and...
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