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Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor / Edition 1

Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor / Edition 1

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by John C. Bogle, Peter L. Bernstein

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ISBN-10: 0471295434

ISBN-13: 9780471295433

Pub. Date: 04/01/1999

Publisher: Wiley

Common Sense on Mutual Funds. New Imperatives for the Intelligent Investor Forward by Peter L.Bernstein.

When Jack Bogle speaks, people listen—whether they are fans or not. As the senior chairman and founder of the Vanguard Group, one of the two largest mutual fund organizations in the world, he has single-handedly transformed the industry by


Common Sense on Mutual Funds. New Imperatives for the Intelligent Investor Forward by Peter L.Bernstein.

When Jack Bogle speaks, people listen—whether they are fans or not. As the senior chairman and founder of the Vanguard Group, one of the two largest mutual fund organizations in the world, he has single-handedly transformed the industry by championing better funds at lower costs to the investor. A leading thinker and visionary whose ideas and principles have been adopted by countless investors, his name is as synonymous with excellence in mutual fund investing as Warren Buffett's is with excellence in stock investing. Now, in Common Sense on Mutual Funds, Bogle takes a critical look at the mutual fund industry and how we invest, and charts a compelling course for change.

Written in Bogle's inimitable style, this eye-opening book examines the fundamentals of mutual fund investing alongside industry practices that are often in conflict with a sound long-term investment program. Common Sense on Mutual Funds shows investors how to revolutionize their portfolios by embracing simplicity and then avoiding industry pitfalls. Just as Thomas Paine argued for a new way of thinking about independence in "Common Sense," so Bogle sets forth a new way of looking at mutual funds. He presents a platform for intelligent investing and then uncovers the ills that beset the mutual fund industry, serious ills that thwart our efforts to accumulate adequate financial resources. He analyzes costs, scrutinizes asset size, exposes tax inefficiencies, warns of "empty suit" directors, and reveals the severe conflict between fund principles and fund pro-motion. Emphasizing long-term investing and asset allocation, Bogle finds in simplicity the solution to the riddle of fund selection by investors. From stock and bond funds to global investing and index funds, Common Sense on Mutual Funds provides insight, illumination, and enlightenment.

For more than 30 years, Bogle has championed the rights of the fund shareholder, for he believes that investing is first and last about people's hopes and fears and individual goals. In Common Sense on Mutual Funds, he speaks eloquently about individual investors and how their interests are not being well-served: "The ills and injustices suffered by mutual fund investors are not so dissimilar to those our forebears suffered under English tyranny. . . . I have no quarrel with management companies focusing on profits. But the trade-off between the profits that accrue to fund shareholders and the profits that accrue to the fund management companies seems subject to no independent watchdog, despite the fact that it is the shareholders who actually own the mutual funds."

Organized as a series of essays on the investment issues of the day, this insider's view of the industry makes vital information on mutual funds accessible to experienced investors as well as those just beginning. A veritable treasure chest filled with insight and guidance from a true leader, Common Sense on Mutual Funds is an invaluable addition to every investor's library. Bogle's message, amid the cacophony of investment advice, is clear and simple: common sense will rule the day.

JOHN C. BOGLE is the founder and Senior Chairman of The Vanguard Group, Inc., the world's largest no-load mutual fund group, with more than ten million shareholders and $400 billion in assets. He has studied mutual funds in depth since 1949, when he began the research for his senior thesis at Princeton University before joining the industry in 1951. In 1997, he was identified as one of seven of the world's twentieth century "Creator-Leaders," in Leadership in Financial Services by Steven I. Davis. In 1998, he received the Distinguished Service Award of the Association for Investment Management and Research. And early in 1999, his alma mater, Princeton University, presented him with its coveted Woodrow Wilson Award, exemplifying "Princeton in the Nation's Service." Bogle is the author of the bestselling book, Bogle on Mutual Funds: New Perspectives for the Intelligent Investor, as well as numerous articles on investing.

Product Details

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Table of Contents


On Long-Term Investing: Chance and the Garden.

On the Nature of Returns: Occam's Razor.

On Asset Allocation: The Riddle of Performance Attribution.

On Simplicity: How to Come Down to Where You Ought to Be.


On Indexing: The Triumph of Experience over Hope.

On Equity Styles: Tick-Tack-Toe.

On Bonds: Treadmill to Oblivion?

On Global Investing: Acres of Diamonds.

On Selecting Superior Funds: The Search for the Holy Grail.


On Reversion to the Mean: Sir Isaac Newton's Revenge on Wall Street.

On Investment Relativism: Happiness or Misery?

On Asset Size: Nothing Fails Like Success.

On Taxes: The Message of the Parallax.

On Time: The Fourth Dimension-Magic or Tyranny?


On Principles: Important Principles Must Be Inflexible.

On Marketing: The Message Is the Medium.

On Technology: To What Avail?

On Directors: Serving Two Masters.

On Structure: The Strategic Imperative.


On Entrepreneurship: The Joy of Creating.

On Leadership: A Sense of Purpose.

On Human Beings: Clients and Crew.





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Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor 5 out of 5 based on 0 ratings. 5 reviews.
Guest More than 1 year ago
Bogle's text on Mutual Funds represents a straightforward educational template for small investors to succeed financially. John's prime thesis "helping the little guy succeed fincancially" is presented clearly through the text narratives and then enhanced through the numberous charts.
Guest More than 1 year ago
...I transfered the majority of my assets to the Vangaurd Group from other financial institutions (to avoid purchasing fees for Vangaurd funds) and socked all the cash into the LifeStrategy Growth Fund - VASGX. Yeah, I know it's boring, but I'll be sleeping better at night for it. I tried to critique this book before but it hasn't posted. If it ever does I may have two reviews for this same book; the sentiment will be the same though.
Guest More than 1 year ago
We believe that this classic work by one of the twentieth century's great investment authorities belongs on every investor's bookshelf. Published in 1999, at the height of a notorious stock market bubble, it was a rare, sage, clear-eyed appraisal of investment reality. It remains relevant. Author John C. Bogle argues so strenuously for a low-cost, passive investment approach based on index funds that you could almost accuse him of marketing hype. After all, he did start Vanguard, an investment company best known for its low-cost index funds. However, the evidence he presents to back up everything he says exonerates him fully. Today's investors are not quite as eager as investors were in the 1990s to believe in the impossible dream of infinite wealth from the stock market. Still, many people waste their time and money trying to beat a market that the best financial research unequivocally shows is, for most people and over the long run, unbeatable. Bogle explains why, while recommending much-needed reform of the mutual fund industry.
Guest More than 1 year ago
Great book on mutual funds. Bogle backs up his views with facts and figures that clearly point out the current greedy state of the mutual fund industry management structure. He confirms many of the suspicions experienced mutual fund investors already have about fees and taxes that remain cleverly hidden deep in reports. Bogle keeps it simple with his charts and explanations. Basic investors can easily understand his rationale. He is a pioneer in investor education. Low cost passive management funds deserve respect - the mutual fund industry is in for change and Bogle understands why - costs matter. Investors beware - market fluctuations may not be your worst enemy! The system is being stacked against you and Bogle gives you the best alternative. I bet he was tough to work for - but fair.
Guest More than 1 year ago
I've been investing with Vanguard for nearly six year. My only regret is that I didn't read the founder's book when it first came out. I knew bits and pieces of his philosophy but was not aware of its depth. I have switched my mutual fund choices for the last time. Now, no matter what happens with the market, I feel confident I will understand like I hadn't in the past, what is happening and why. I will also be confident never second guessing my fund selections. How many people can say that? And yet the way Mr. Bogle presents the fundamentals of mutual fund investing, makes such a bold statement possible. This book is an absolute necessity for investors, especially Vanguard investors. It would be sad for anybody to be investing with that company and not fully understand the genius who inspired its founding.