FYI: In 1950, 4.2% of the U.S. population participated in the stock market, almost exclusively through directly held stocks. The median investor held 2 stocks. Almost half held 1. Even wealthy investors failed to diversify. Mutual funds played almost no role in household portfolios.¹
This investment nightmare persisted for decades. Until the mid-1980s, only Jack Bogle, Walter Morgan, and some 4 million other households participated in the economic fortunes of U.S. corporations through mutual funds.²
Since then, mutual and exchange-traded funds have steadily transformed the way we invest. Today, we own almost half our stake in U.S. business through funds.³ (After repeatedly failing to pick the few stocks that drive returns, I’ve raised my proportion to 100%.)
Regards,
Ted
https://vanguardblog.com/2019/09/06/why-i-love-mutual-funds/
