The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns

by John C. Bogle


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Product Details

ISBN-13: 9781119404507
Publisher: Wiley
Publication date: 10/16/2017
Series: Little Books. Big Profits Series
Edition description: Revised
Pages: 304
Sales rank: 13,599
Product dimensions: 5.30(w) x 6.90(h) x 1.30(d)

About the Author

JOHN C. BOGLE is founder and former chairman of the Vanguard Group of mutual funds and President of its Bogle Financial Markets Research Center. After creating Vanguard in 1974, he served as chairman and chief executive officer until 1996 and senior chairman until 2000. Bogle is the author of ten books, including Enough: True Measures of Money, Business, and Life, The Little Book of Common Sense Investing, and Clash of the Cultures: Investment vs. Speculation, all published by Wiley.

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Table of Contents

Introduction to the 10th Anniversary Edition xv

Chapter One A Parable 1

Chapter Two Rational Exuberance 9

Chapter Three Cast Your Lot with Business 25

Chapter Four How Most Investors Turn a Winner’s Game into a Loser’s Game 39

Chapter Five Focus on the Lowest-Cost Funds 53

Chapter Six Dividends Are the Investor’s (Best?) Friend 65

Chapter Seven The Grand Illusion 73

Chapter Eight Taxes Are Costs, Too 85

Chapter Nine When the Good Times No Longer Roll 93

Chapter Ten Selecting Long-Term Winners 111

Chapter Eleven “Reversion to the Mean” 127

Chapter Twelve Seeking Advice to Select Funds? 139

Chapter Thirteen Profit from the Majesty of Simplicity and Parsimony 153

Chapter Fourteen Bond Funds 167

Chapter Fifteen The Exchange-Traded Fund (ETF) 179

Chapter Sixteen Index Funds That Promise to Beat the Market 195

Chapter Seventeen What Would Benjamin Graham Have Thought about Indexing? 209

Chapter Eighteen Asset Allocation I: Stocks and Bonds 223

Chapter Nineteen Asset Allocation II 237

Chapter Twenty Investment Advice That Meets the Test of Time 259

Acknowledgments 269

What People are Saying About This

From the Publisher

"excellent advice in a concise and accessible manner." (The Wall Street Journal, April 10, 2007)

"It's hard to argue with the eloquent logic of John C. Bogle's latest ode to index funds…Bogle's 'Little Book' offers much exemplary advice." (Bloomberg News, April 2007)

Among monetary gurus and wise men, John Bogle is a singular case. As the founder of the highly regarded Vanguard Group, he is revered for the company's commitment to providing value to its clients as well as profits to its investors. He even has his own group of fans, called "Bogleheads," who cling to every utterance and pronouncement from the great man.

In this latest entry in the Little Book series, Bogle's gentle prose contains idiot-proof advice for investors at all levels. He punctures the myth of the superiority of mutual funds and instead declares that by using a bit of common sense, low-cost index funds are the way to go for most modest stock investors. He's also wary of the ways of Wall Street and cautions investors to steer clear of its institutional con men and cautions against excessive fees and taxes that invariably eat up profits.
It's not very glamorous or exciting advice, but that's also his point: Slow and steady wins the race. (Miami Herald, April 9, 2007)

"genuinely provides investors with the ideal strategy for making the most of stock-market investing" (Motley Fool's UK website, March 8, 2007)

"It's an easy read that will, I suspect, quickly join Burton Malkiel's A Random Walk Down Wall Streetand Charles Ellis's Winning the Loser's Gameas one of the indexing crowd's favorite books."—Jonathan Clements (Wall Street Journal)

"It's hard to argue with the eloquent logic of John C. Bogle's latest ode to index funds." (Bloomberg Terminal, March 8, 2007).

"provides an opportunity to reflect on a remarkable career and legacy." (Financial Times, 19th March 2007)

"…it is John Bogle's hymn to index-tracking investment, and a fascinating read it is too." (Daily Telegraph, March 2007)

"Those who doubt my reasoning should read the Little Book of Common Sense Investing by John Bogle." (FT Adviser, 24th April 2007)

"…particularly interesting…goes some way towards discrediting the stockpicking virtues taught to me in my time as a financial journalist." (Fund Strategy, 7th May 2007)

"…wittily written, pocket-sized guide…If you want to learn how to avoid the unpredictabilities of the stock market and the fees of middle men, then this book is well worth a read." (Pensions Age, May 2007)

" ... For the individual investor, it presents a solid game plan for growing funds over the long haul." (Directorship, July 2007)

"... read Bogle's new Little Book of Common Sense Investingand you'll see how easy it is to beat the Alpha Hunters at their own game!" (MarketWatch, July 2007)

‘The one big thing that Bogle knows — and explains so well in this slender volume — is that buying and holding a broad benchmark of stocks while keeping fees to a minimum leads to higher long-term returns than constantly trading in a vain attempt to beat the market. Common sense? Yes. But radical too, as the entire investing establishment is designed to get investors to do the exact opposite.” (CNNMoney)

"Business books are often written by show-offs who want you to know all about their knowledge of the Greek tragedies and dark-coloured birds. So it was nice to get hold of the simply written Little Book of Common Sense Investing…Its author, John Bogle, in no simpleton. He built Vanguard into a huge fund manager...He is synonymous with index funds in the US. Vanguard's S&P 500 tracker is by far the world's largest mutual fund."—Stephen Cranston, Investor's Notebook (Jan 23, 2013)

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Little Book of Common Sense Investing 4.1 out of 5 based on 0 ratings. 17 reviews.
Guest More than 1 year ago
Good book, good buy. This book is relatively small but covers much ground in the promotion of index funds versus any other investment strategy for almost all investors. I understand the book is updated but perhaps slightly inferior to his previous Common Sense on Mutual Funds. This book seems filled almost to overflowing with historical evidence that denounces what appears to be mythical to Bogle: the Alpha. If you had to choose one book on investing then this is probably as good a choice as A Random Walk Down Wall Street although not nearly as comprehensive, it is a quicker read.
RamiFaour on LibraryThing 5 months ago
The message of this book are very clear, and John Bogle makes sure that you will understand it by repeating it too many times.The message is the following: the best investing strategy is to invest in the american companies, all of them, from all sectors, or more practically in an index fund(S&P500, etc), and to hold on through the roller coaster of the market.But Bogle offers more than this first step, the next step is making sure to MINIMIZE costs, in the form of taxes, and fees. Bogle shows, convincingly, how in the long term, expense ratios as little as 1% add up in the long run to make a significant difference on the returns of one's portfolio.One must always keep in mind the story presented in the beginning of the book, where a family is prospering by investing in real business, but is soon deranged by mediators who charge fees and promise returns, only to take up a big portion of the income that the whole family used to enjoy. This point is very important, maybe not for Bogle, but for any aspiring Bogle.
sbarrow57 on LibraryThing 5 months ago
This is the first book that I have read on index investing and I was a little disappointed. The author spells out his investment strategy of using index funds to cover the whole market very eloquently in the first couple of chapters. After that the little book of common sense investing does not seem so little as the later chapters drag on and just seem to constantly repeat what has already been stated.Also it is a bit too US centric for a a potential investor from the UK.
beatbox32 on LibraryThing 5 months ago
I'm 29-going-on-30 and wishing that I had absorbed the wisdom imparted in this book when I first signed up for a 401k. But here I am, seven years later, finally having a real understanding of where I should stash my retirement nest egg.The premise behind this book is simple - index funds have proven to be the wisest vehicle to throw your money in to achieve long-term profits. Bogle does an excellent job of explaining why this is, utilizing the "humble arithmetic" behind his thesis. For those who are like my old self and unsure of the best way to invest your retirement savings, look into low-cost index funds. And don't just throw your money in there...purchase this book and understand WHY you should.
rayski on LibraryThing 5 months ago
Index Funds sums it all up. A quick read, but leaves you wanting more. More like William Bernstein¿s `The Four Pillars of Investing¿ which is a superior read.
Jeremy McCaslin More than 1 year ago
Changd my life. One of the best books ever read.
Anonymous More than 1 year ago
This is a book to be read as one starts investing at any age. Read it early and have a track to run on that will lead to securing your retirement. Read it again later in you investment life and it will remind you to discount the hype of advertising. It is a book by the best that will focus your investment program and keep it focused. Crookedwood
Anonymous More than 1 year ago
Anonymous More than 1 year ago
After reading paper copy, overall advice is great: don't pay others to manage your retirement savings.
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Investment_Reader More than 1 year ago
This is the best investment book ever written. All investment professionals should read this book, as should anyone with investments. John Bogle, the inventor of the index fund, has proven indexing beats every other option! A good companion to this book is, "The 401(k) Cookbook", which helps individuals implement Bogle's ideas in their own 401k account.
FredSmith More than 1 year ago
The Little Book of Common Sense Investing, is one of a series of Little Books. It is written in an informative, but easy to understand style. An excellent book for new stock traders.
Anonymous More than 1 year ago
The Little Book of Common Sense Investing is a great book. Bogle does a good job of explaining how and why investing isn't difficult. He offers advice on investing that allows those who might be concerned about the arcane ways of the "Street" a way to begin a journey aimed at a successful investing life.