The Little Book of Common Sense Investing

The Little Book of Common Sense Investing

eBook - 2010
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“There are a few investment managers, of course, who are very good ? though in the short run, it?s difficult to determine whether a great record is due to luck or talent. Most advisors, however, are far better at generating high fees than they are at generating high returns. In truth, their core competence is salesmanship. Rather than listen to their siren songs, investors ? large and small ? should instead read Jack Bogle?s The Little Book of Common Sense Investing .” ? Warren Buffett, Chairman of Berkshire Hathaway, 2014 Annual Shareholder Letter. Investing is all about common sense. Owning a diversified portfolio of stocks and holding it for the long term is a winner?s game. Trying to beat the stock market is theoretically a zero-sum game (for every winner, there must be a loser), but after the substantial costs of investing are deducted, it becomes a loser?s game. Common sense tells us?and history confirms?that the simplest and most efficient investment strategy is to buy and hold all of the nation?s publicly held businesses at very low cost. The classic index fund that owns this market portfolio is the only investment that guarantees you with your fair share of stock market returns. To learn how to make index investing work for you, there?s no better mentor than legendary mutual fund industry veteran John C. Bogle. Over the course of his long career, Bogle?founder of the Vanguard Group and creator of the world?s first index mutual fund?has relied primarily on index investing to help Vanguard?s clients build substantial wealth. Now, with The Little Book of Common Sense Investing, he wants to help you do the same. Filled with in-depth insights and practical advice, The Little Book of Common Sense Investing will show you how to incorporate this proven investment strategy into your portfolio. It will also change the very way you think about investing. Successful investing is not easy. (It requires discipline and patience.) But it is simple. For it?s all about common sense. With The Little Book of Common Sense Investing as your guide, you?ll discover how to make investing a winner?s game: Why business reality?dividend yields and earnings growth?is more important than market expectations How to overcome the powerful impact of investment costs, taxes, and inflation How the magic of compounding returns is overwhelmed by the tyranny of compounding costs What expert investors and brilliant academics?from Warren Buffett and Benjamin Graham to Paul Samuelson and Burton Malkiel?have to say about index investing And much more You?ll also find warnings about investment fads and fashions, including the recent stampede into exchange traded funds and the rise of indexing gimmickry. The real formula for investment success is to own the entire market, while significantly minimizing the costs of financial intermediation. That?s what index investing is all about. And that?s what this book is all about.
Publisher: [S.I.] : Wiley, 2010.
ISBN: 9780470139271
Branch Call Number: eBOOK OVERDRI
Additional Contributors: OverDrive, Inc


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May 04, 2019

Written by the late great John C Bogle who passed away this year. A pioneer in the invention of the index fund Bogle explains the thought process behind it and how the average person can beat the majority of complicated hedge fund managers. In his book he explains it is a smart choice to own a piece of corporate America arguably the most productive nation on the planet. His ability to simplify to the masses on topics concerning financial freedom are a real breath of fresh air compared to the pollution and noise caused through the shenanigans on Wall Street, for this reason this book deserves a 5/5. I recommend this book for those curious about finance or looking to self invest. @selfhelpguru of the Hamilton Public Library Teen Review Board

Mar 02, 2019

Need to buy this book!

Feb 20, 2019

This is a book everyone should read. It is very simple to understand and full of very useful information. Makes you really think and evaluate your current situation.

Jul 16, 2015

Bogle is one of the originators of the Index Fund or ETF (Exchange Traded Fund) through his company Vanguard Mutual Funds. In Canada, the MERs for mutual funds are outrageous (some are upwards of 2.5%), so Index investing makes even more sense here. As with all things, the 'financial industry' has noted the exodus from mutual funds to ETFs, so there are now literally thousands of ETFs to choose from, and again, some ETF fees are creeping closer to 2%. The key is to choose low cost ETFs ( .25% or less), that are broadly diversified. You may only need four funds; XSP (S and P 500 in the US-.18% MER), XIU (Canada TSX - .25% MER), ZDM (the rest of the world market - .52% MER), and XBB (Bonds - .25% MER). Forget inverse yield ETFs, Leveraged ETFs and other specialized sector ETFs because they don't give you enough diversification. Set your percentages (60% growth, 40% safe stuff), rebalance twice per year, and rest easy.
Bogle shows how simple is best, and that no one can possibly beat humble math when it comes to long term returns.

Jun 22, 2015

In this book John Bogle compares passive index funds with actively managed mutual funds and shows how indexing is a better choice over actively managed mutual funds. He describes how actively managed mutual funds charge high fees and how much these fees matter.

May 13, 2015

I've thought of myself as a pretty good amateur mutual fund investor but this changed my perspective in a major way. I've always had some of my investments in index funds but now I have the vast majority of my equities in index funds. I'm not as convinced when it comes to bonds but there is a strong case for index funds with them, too.

Jan 27, 2015

I truly enjoyed this book. It's written with the neophyte in mind and full of useful nuggets of information.


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