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#347: Back in the 1960\u2019s, Jack Bogle thought that actively-managed mutual funds performed better than a passive indexing strategy.\nHe pseudonymously published a paper saying so.\nBut academic data from the University of Chicago challenged his preconceived notions. He attended seminars that showed how the drag on returns that come from management fees and trading costs, coupled with the reality that the bulk of gains come from a hard-to-predict handful of equities (a concept known as \u201cskew\u201d), lead to index funds holding long-term outperformance.\nAt the time, index funds were only available to major institutional investors. Regular folks couldn\u2019t access these winners.\nAnd that might have continued for a long time \u2026\n\u2026 except history turned on a dime.\nIn the early 1970\u2019s, Jack Bogle got fired. Rather than accept defeat, he turned into a renegade. He launched Vanguard and began offering index funds to ordinary individual investors.\nAnd the rest, as they say, is history.\nIn today\u2019s episode, we learn about the revolutionary ideas that paved the path to passive investing.\nWe learn about the radical invention of the index fund.\nWe discover the drama, the tenacity, the betrayal and redemption behind it.\nAnd we discover the lessons that the history of the index fund holds.\nEnjoy!\nFor more information, visit the show notes at https://affordanything.com/episode347\nLearn more about your ad choices. Visit podcastchoices.com/adchoices