The term references a specific investment strategy widely discussed within an online community focused on passive investing. This strategy, popularized by followers of John C. Bogle, founder of Vanguard, typically involves allocating assets across three broad, low-cost index funds: a total stock market fund, a total international stock market fund, and a total bond market fund. Discussions surrounding this approach often occur on a popular social media platform.
The appeal of this investment approach lies in its simplicity, diversification, and low cost. Its advocates believe that consistent, long-term investing in these broad market indexes offers a high probability of achieving market returns without the risks associated with actively managed funds or individual stock picking. The principles behind this strategy are rooted in academic research demonstrating the difficulty of consistently outperforming the market over time.
