Are Index Funds Too Powerful? Ask Jack Bogle

In the world of investing, it is possible to beat the market -- but that takes a fair amount of work, skill and patience. For those who lack any (or all) of the necessary ingredients, the simple, popular solution has become to invest in index funds instead. You won’t beat the market, but you can count on pretty well matching it -- which isn’t such a bad deal for the individual investor. However, as John Bogle, the inventor of the index fund, recently noted, with so many people putting so much capital into the hands of index fund operators, and half of that into the hands of the three largest, there is a risk to corporate governance. Who’s driving this train?

In this segment of the MarketFoolery podcast, host Chris Hill and MFAM Funds’ Bill Barker, discuss their perspectives on the situation.
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