The Little Book of Common Sense Investing

The Little Book of Common Sense Investing

The Only Way to Guarantee your Fair Share of Stock Market Returns

Book - 2017 | 10th anniversary edition, Updated & revised.
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The best-selling investing "bible" offers new information, new insights, and new perspectives

The Little Book of Common Sense Investing is the classic guide to getting smart about the market. Legendary mutual fund pioneer John C. Bogle reveals his key to getting more out of investing: low-cost index funds. Bogle describes the simplest and most effective investment strategy for building wealth over the long term: buy and hold, at very low cost, a mutual fund that tracks a broad stock market Index such as the S&P 500.

While the stock market has tumbled and then soared since the first edition of Little Book of Common Sense was published in April 2007, Bogle's investment principles have endured and served investors well. This tenth anniversary edition includes updated data and new information but maintains the same long-term perspective as in its predecessor.

Bogle has also added two new chapters designed to provide further guidance to investors: one on asset allocation, the other on retirement investing.

A portfolio focused on index funds is the only investment that effectively guarantees your fair share of stock market returns. This strategy is favored by Warren Buffett, who said this about Bogle: "If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack Bogle. For decades, Jack has urged investors to invest in ultra-low-cost index funds. . . . Today, however, he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me."

Bogle shows you how to make index investing work for you and help you achieve your financial goals, and finds support from some of the world's best financial minds: not only Warren Buffett, but Benjamin Graham, Paul Samuelson, Burton Malkiel, Yale's David Swensen, Cliff Asness of AQR, and many others.

This new edition of The Little Book of Common Sense Investing offers you the same solid strategy as its predecessor for building your financial future.

Build a broadly diversified, low-cost portfolio without the risks of individual stocks, manager selection, or sector rotation. Forget the fads and marketing hype, and focus on what works in the real world. Understand that stock returns are generated by three sources (dividend yield, earnings growth, and change in market valuation) in order to establish rational expectations for stock returns over the coming decade. Recognize that in the long run, business reality trumps market expectations. Learn how to harness the magic of compounding returns while avoiding the tyranny of compounding costs.

While index investing allows you to sit back and let the market do the work for you, too many investors trade frantically, turning a winner's game into a loser's game. The Little Book of Common Sense Investing is a solid guidebook to your financial future.

Publisher: Hoboken, New Jersey : Wiley, [2017]
Edition: 10th anniversary edition, Updated & revised.
Copyright Date: ©2017
ISBN: 9781119404507
Branch Call Number: 332.6327 Bog 2017
Characteristics: xxxi, 270 pages : illustrations.
Alternative Title: Common sense investing


From the critics

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Sep 26, 2019

I found it both illuminating and empowering. Well worth looking into.

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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