Index Fund Philosophy

Biological Parallel

Tallgrass prairie stability doesn't come from identifying the 'best' species—it comes from holding the entire portfolio. When drought favors C4 grasses, they dominate. When cool-wet years arrive, C3 species surge. No manager could predict winners year-to-year, but holding all species captures returns across conditions. Bogle's index fund philosophy mirrors this biodiversity strategy: stop trying to pick winners; own the entire market ecosystem and capture aggregate growth without selection risk.