If everyone Indexed and why I don't

Bogle Says If Everybody Indexed, Markets Would Fail Under Chaos

Excerpt:

Investors wouldn’t have a way to capture value in the stock market if it were entirely held by passively managed funds, according to Jack Bogle, the founder of Vanguard Group. “If everybody indexed, the only word you could use is chaos, catastrophe,” he said in an interview with Yahoo! Finance Saturday. “There would be no trading, there would be no way to convert a stream of income into a pile of capital or a pile of capital into a stream of income. The markets would fail.”

On the other hand Warren Buffett advises:

"When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. Both large and small investors should stick with low-cost index funds." (2016)

"The 21st century will witness further gains, almost certain to be substantial. The goal of the non-professional should not be to pick winners — neither he nor his 'helpers' can do that — but should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index SPX, +0.41% fund will achieve this goal." (2013)

Why I don't:

My expense ratio is 0% and the yield on our investments is over 3%. Buffett, while he advises Index investing is NOT an index investor. If one buys the S&P 500 one buys the deadbeats with the winners