IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-30757-5_12.html
   My bibliography  Save this book chapter

Costs

In: Investment Beliefs

Author

Listed:
  • Kees Koedijk

    (Tilburg University)

  • Alfred Slager

    (Tilburg University
    Stork Pension Fund)

Abstract

“To pay no attention to costs is probably the biggest dumb mistake investors can make.”1 The words strike home from the mouth of John (“Jack”) Bogle, a veteran in the investment industry, widely known as the founder of one trillion dollar asset management firm Vanguard Group. He estimates that total costs in 2007 amounted to $528 billion in the US alone (Bogle 2008). Bogle knows better than anyone else the long-term impact of fees, commissions, taxes and other kind of costs on the net return of investments, advertising this as “the Magic of Compounding vs. the Tyranny of Compounding Costs”:2 the “magical” impact of combining a reasonable rate of return with the concept of time alone, versus the adverse effect that costs have on this process.

Suggested Citation

  • Kees Koedijk & Alfred Slager, 2011. "Costs," Palgrave Macmillan Books, in: Investment Beliefs, chapter 12, pages 115-120, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-30757-5_12
    DOI: 10.1057/9780230307575_12
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-30757-5_12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.