Index funds are the proxy investment for almost all investors today. The work of John Bogle in promoting low-cost passive investment has been incredible. So incredible that Buffett has said Bogle has done more for the average American investor than anyone else.
On the other hand, Apple is one of the world’s most valuable companies. With a market-cap approaching $1 trillion, it is a tech monster which has legions of loyal customers around the world.
Lets look at the comparison of the S&P 500 index fund versus stocks since December 1980 – the date Apple went public.
• If you had invested $10,000 in an index fund in 1980, you would have $188,390 today.
• If you had invested $10,000 in Apple Inc. in 1980, you would have $3,427,000.
• The difference between both investments would have been 32,389%, or $3,238,000.