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The Little Book of Common Sense Investing by John C.Bogle

The Little Book of Common Sense Investing by John C.Bogle

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John C. Bogle’s The Little Book of Common Sense Investing

There are a select few excellent investment managers, but it may be challenging to tell whether a successful track record is the result of aptitude or luck in the near term. However, the majority of advisers are much more adept at generating high fees than they are at creating big profits. In actuality, their primary skill is sales. Investors of all sizes should study Jack Bogle’s The Little Book of Common Sense Investing rather than succumb to their seductive sings. — Warren Buffett’s 2014 Annual Shareholder Letter to Shareholders, Chairman of Berkshire Hathaway.

The key to investing is using common sense. A winning strategy is to hold a diverse portfolio of equities over the long term. In theory, beating the stock market is a zero-sum game (there must be winners and losers), but if the high costs of investing are taken into account, it becomes a loser’s game. The most straightforward and effective investing plan is to acquire and hold all of the publicly traded companies in the country at extremely cheap prices, according to common sense and history. The only investment that ensures you will receive your fair share of stock market gains is the traditional index fund that owns this market portfolio.

John C. Bogle, a renowned mutual fund industry veteran, is the ideal mentor to learn how to make index investing work for you. Bogle, the founder of the Vanguard Group and the first index mutual fund ever created, has relied heavily on index investing over the course of his extensive career to assist Vanguard’s investors in accumulating significant wealth. He now wants to assist you in doing the same with The Little Book of Common Sense Investing.

The Little Book of Common Sense Investing will demonstrate how to include this tested investing method in your portfolio while also providing in-depth insights and helpful suggestions. Additionally, it will alter the way you approach investment itself. It’s difficult to invest successfully. (It calls for patience and self-control.) But it’s easy. It’s all about common sense, after all.

You’ll learn how to turn investing into a winning game by using The Little Book of Common Sense Investing as your guide:

Why business reality—such as dividend yields and profits growth—matters more than what the market anticipates
How to mitigate the negative effects of taxes, inflation, and investment expenses
How the tyranny of compounding expenses overpowers the beauty of compounding returns
What eminent investors and scholars, like Paul Samuelson, Burton Malkiel, Warren Buffett, and Benjamin Graham, have to say about index investing
And a lot more

The recent rush into exchange traded funds and the advent of indexing gimmickry are only two examples of contemporary investment trends and styles that are cautioned against. Owning the whole market while dramatically reducing the expenses of financial intermediation is the true secret to investing success. That is the main goal of index investing. And it is the main topic of this book.

Salepage : The Little Book of Common Sense Investing by John C.Bogle

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