Bogle Says If Everybody Indexed, Markets Would Fail Under Chaos
- Vanguard founder says chance of everybody indexing is ‘zero’
- Warren Buffett praises Bogle for lower fees, better returns
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Investors wouldn’t have a way to capture value in the stock market if it were entirely held by passively managed funds, according to Jack Bogle, the founder of Vanguard Group.
“If everybody indexed, the only word you could use is chaos, catastrophe,” he said in an interview with Yahoo! Finance Saturday. “There would be no trading, there would be no way to convert a stream of income into a pile of capital or a pile of capital into a stream of income. The markets would fail.”