--- title: "Meaning & Key Takeaway of: The general systems of money management…" description: "\"The general systems of money management today require people to pretend to do something they can't do and like something they don't. It's a funny busin..." image: "https://sms4smile.com/quotes/i/13c/john-c-bogle-2199_bases_the-general-systems-of-money-management_1760616.jpg" --- # The general systems of money management today require… ![“The general systems of money management today require people to pretend to do something they can't do and like something they don't. It's a funny business because on a net basis, the whole investment management business together gives no value added to all buyers combined. That's the way it has to…” quote by John C. Bogle](https://sms4smile.com/quotes/i/13c/john-c-bogle-2199_bases_the-general-systems-of-money-management_1760616.jpg) [Download](https://sms4smile.com/quotes/i/13c/john-c-bogle-2199_bases_the-general-systems-of-money-management_1760616.jpg) [Open image](https://sms4smile.com/quotes/i/13c/john-c-bogle-2199_bases_the-general-systems-of-money-management_1760616.jpg) > “The general systems of money management today require people to pretend to do something they can't do and like something they don't. It's a funny business because on a net basis, the whole investment management business together gives no value added to all buyers combined. That's the way it has to work. Mutual funds charge two percent per year and then brokers switch people between funds, costing another three to four percentage points. The poor guy in the general public is getting a terrible product from the professionals.” [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The investment industry charges high fees while delivering little real benefit to ordinary investors, creating a system that profits professionals at the expense of the public. **In simple terms:** Investors pay high fees for little value. Key Takeaway Seek low‑cost, transparent investments. Themes finance ethics investing consumer protection Mood skeptical concerned Type advisory critical When to use this quote - retirement planning - personal budgeting - advisor selection - portfolio review Key Concepts fee structures agency problem value creation Questions to Reflect On - How can investors verify true value added? - What alternatives exist to traditional mutual funds? A Different Perspective Low fees alone don’t guarantee performance; market risk remains. ★ ★ ★ ★ ★ No ratings yet [Brokers](https://sms4smile.com/quotes/about/brokers/) [Business](https://sms4smile.com/quotes/about/business/) [Buyers](https://sms4smile.com/quotes/about/buyers/) [Customer](https://sms4smile.com/quotes/about/customer/) [Funny business](https://sms4smile.com/quotes/about/funny-business/) [General public](https://sms4smile.com/quotes/about/general-public/) [Giving](https://sms4smile.com/quotes/about/giving/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investment](https://sms4smile.com/quotes/about/investment/) [Investment management](https://sms4smile.com/quotes/about/investment-management/) [Management](https://sms4smile.com/quotes/about/management/) [Money](https://sms4smile.com/quotes/about/money/) [Money management](https://sms4smile.com/quotes/about/money-management/) [Mutual fund](https://sms4smile.com/quotes/about/mutual-fund/) [Mutual funds](https://sms4smile.com/quotes/about/mutual-funds/) [People](https://sms4smile.com/quotes/about/people/) [Percentages](https://sms4smile.com/quotes/about/percentages/) [Today](https://sms4smile.com/quotes/about/today/) [Values](https://sms4smile.com/quotes/about/values/) ## Related quotes > [Mutual funds charge 2% per year and then brokers switch people between funds, costing another 3-4 percentage points. The poor guy in the general…](https://sms4smile.com/quotes/charlie-munger/mutual-funds-charge-2-per-year-and-then-brokers-switch-people-between/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [The Vanguard Experiment was designed to prove that mutual funds could operate independently, and do so in a manner that would directly benefit their…](https://sms4smile.com/quotes/john-c-bogle/the-vanguard-experiment-was-designed-to-prove-that-mutual-funds-could/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I've been studying mutual funds since 1949, when I began researching my senior thesis at Princeton University.](https://sms4smile.com/quotes/john-c-bogle/i-ve-been-studying-mutual-funds-since-1949-when-i-began-researching/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [We need a federal government commission to study the way our financial services system is working - I believe it is working badly -…](https://sms4smile.com/quotes/john-c-bogle/we-need-a-federal-government-commission-to-study-the-way-our/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Mutual funds with superior performance records often falter.](https://sms4smile.com/quotes/john-c-bogle/mutual-funds-with-superior-performance-records-often-falter/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Well, I like regulation as little as anybody else. It can be intrusive. It can be detailed. It can be bureaucratic. It can be…](https://sms4smile.com/quotes/john-c-bogle/well-i-like-regulation-as-little-as-anybody-else-it-can-be-intrusive/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Our capitalistic scheme in the latter years of the 20th century seems to have lost its way. We've had a "pathalogical change" from traditional…](https://sms4smile.com/quotes/john-c-bogle/our-capitalistic-scheme-in-the-latter-years-of-the-20th-century-seems/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Without getting into brothels, there are ethical capitalists the problem is that there aren't enough of them. It is not "just a few bad…](https://sms4smile.com/quotes/john-c-bogle/without-getting-into-brothels-there-are-ethical-capitalists-the/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Surprise! The returns reported by mutual funds aren't actually earned by mutual fund investors.](https://sms4smile.com/quotes/john-c-bogle/surprise-the-returns-reported-by-mutual-funds-aren-t-actually-earned/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I was an ambassador for Betway during the Rugby World Cup and at the moment I'm working as an ambassador for Artemis Investment Management.…](https://sms4smile.com/quotes/mike-tindall/i-was-an-ambassador-for-betway-during-the-rugby-world-cup-and-at-the/) [Mike Tindall](https://sms4smile.com/quotes/author/mike-tindall/) > [We at Fidelity view ourselves just as much a financial information processing company as an investment management firm. That may not be too newsworthy.](https://sms4smile.com/quotes/abigail-johnson/we-at-fidelity-view-ourselves-just-as-much-a-financial-information/) [Abigail Johnson](https://sms4smile.com/quotes/author/abigail-johnson/) > [There's more honor in investment management than in investment banking.](https://sms4smile.com/quotes/charlie-munger/there-s-more-honor-in-investment-management-than-in-investment-banking/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Invest in low-turnover, passively managed index funds... and stay away from profit-driven investment management organizations... The mutual fund industry is a colossal failure... resulting…](https://sms4smile.com/quotes/david-f-swensen/invest-in-low-turnover-passively-managed-index-funds-and-stay-away/) [David F. Swensen](https://sms4smile.com/quotes/author/david-f-swensen/) > [A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business](https://sms4smile.com/quotes/charlie-munger/a-lesson-on-elementary-worldly-wisdom-as-it-relates-to-investment/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [The essence of investment management is the management of risks, not the management of returns.](https://sms4smile.com/quotes/benjamin-graham/the-essence-of-investment-management-is-the-management-of-risks-not/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) ## More by John C. Bogle > [The basic idea of retirement income is, to me, to get a check, two checks every month, one from your fixed income and one…](https://sms4smile.com/quotes/john-c-bogle/the-basic-idea-of-retirement-income-is-to-me-to-get-a-check-two/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [When you're young, you've got plenty of time to recover from your mistakes.](https://sms4smile.com/quotes/john-c-bogle/when-you-re-young-you-ve-got-plenty-of-time-to-recover-from-your/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I almost hate to say how proud I am of my career and, most of all, helping folks get the returns they deserve.](https://sms4smile.com/quotes/john-c-bogle/i-almost-hate-to-say-how-proud-i-am-of-my-career-and-most-of-all/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [The Vanguard Experiment was designed to prove that mutual funds could operate independently, and do so in a manner that would directly benefit their…](https://sms4smile.com/quotes/john-c-bogle/the-vanguard-experiment-was-designed-to-prove-that-mutual-funds-could/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [“An investment in knowledge always pays the best interest. Learning is to the Studious, and Riches to the Careful. If a man empties his…](https://sms4smile.com/quotes/john-c-bogle/an-investment-in-knowledge-always-pays-the-best-interest-learning-is/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I liked the so-called Volcker Rule. I would have separated investment banking and commercial, deposit banking, as we did under the Glass-Steagal Act. I…](https://sms4smile.com/quotes/john-c-bogle/i-liked-the-so-called-volcker-rule-i-would-have-separated-investment/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [We make too much out of past performance, and it's very misleading to investors. It causes them to move money around. They buy a…](https://sms4smile.com/quotes/john-c-bogle/we-make-too-much-out-of-past-performance-and-it-s-very-misleading-to/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [It's very difficult for any particular segment of the stock market to sustain superior performance. The watch word for our financial markets is, "reversion…](https://sms4smile.com/quotes/john-c-bogle/it-s-very-difficult-for-any-particular-segment-of-the-stock-market-to/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I do think that impact investing is not that effective. Shares go from investor A to investor B, and the company doesn't even know…](https://sms4smile.com/quotes/john-c-bogle/i-do-think-that-impact-investing-is-not-that-effective-shares-go-from/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I was born in an earlier generation and, as a group, my classmates at Blair Academy and Princeton University were as ethical, straightforward, and…](https://sms4smile.com/quotes/john-c-bogle/i-was-born-in-an-earlier-generation-and-as-a-group-my-classmates-at/) [John C. 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