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The arithmetic of “all-in” investment expenses

In the January/February issue of the Financial Analysts Journal, Jack Bogle, founder and former chief executive of the Vanguard Group, looks at the “all-in” investment expenses including not only expense ratios byt transaction costs, sales loads and cash drag.

He highlights, in particular, how damaging these costs can be over the long run, and reaffirms the warning he has consistently given to fund investors over the years:

“Do not allow the tyranny of compounding costs to overwhelm the magic of compounding returns”.


Bogle is now president of the Bogle Financial Markets Research Center. His article from the FAJ can be accessed here