Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number.
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns Hardcover – March 5, 2007
|New from||Used from|
There is a newer edition of this item:
"Children of Blood and Bone"
Tomi Adeyemi conjures a stunning world of dark magic and danger in her West African-inspired fantasy debut. Learn more
Customers who bought this item also bought
Customers who viewed this item also viewed
What other items do customers buy after viewing this item?
"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)
From the Inside Flap
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), and 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.
Author interviews, book reviews, editors picks, and more. Read it now
Top customer reviews
There was a problem filtering reviews right now. Please try again later.
The fact is markets do go down, and often times stay down. If one owned the Nasdaq index in the year 2000 at 5000, they are still down over 60% 9 years later.
The Japanese Nikkei index is still down OVER 80% 20 years later.
There is no guarantee that markets rise over time. If it were that easy, we would all be stock market millionaires, but statistically few are.
INDEX INVESTING DOES NOT ADDRESS THE SINGLE MOST IMPORTANT ASPECT OF MONEY MANAGEMENT - RISK MANAGEMENT.
Before you scoff at the facts, do some research, google or wiki, on Bruce Kovner, John Paulson, Michael Marcus, John Henry (Owner of the Boston Red Sox), Monroe Trout, William Dunn, George Soros - all of them "market timers", and "stock pickers" - and all with net worths in the hundreds of millions and billions - literally.
It is a nice sales pitch to tell people that market timing doesn't work, just keep putting money blindly into the financial markets with no risk management strategy.
The financial markets are serious business, and the fact is that the uninformed majority's losses pave the golden road for the few who truly understand that markets do not always "go up".
The fallacy of "buy and hold" index investing has been exposed as ridiculous as the day trading tow truck driver commercials of the late 90's. What exactky is the plan of the index investing crowd for declining markets??
If one owned the Nasdaq index in the year 2000 at 5000, they are still down over 60% 9 years later.
The Japanese Nikkei index is still down OVER 80% 20 years later. Fact...so does index investing really work, or is it just a clever way to "sell" index funds.
Index investing is the King of all financial "sales-pitches" that mislead the uninformed majority...Index investing only works in bull markets, period...A superior investment strategy provides absolute returns, in all market conditions.
Index investing does not tell investors what to do when markets decline..."OK, sit tight, or buy more!" Are you serious. "Just hold on the markets always come back"...do they?
10 years later the S & P is down over 20%
The author has an angle to pitch, which has built Vanguard into a mutual fund giant, which is great for Vanguard, but how have their customers actually done?
Index investing is a great "sales-pitch" - don't let high priced brokers, etc. take your money, when the index fund company can take your money instead.
With the S & P index fund down over 1, 3, 5, and 10 year periods have the fund companies refunded the fees they charged investors to manage the funds? Absolutely not.
As a champion of the investor, why should the author's company make money if their investors are losing money.
It is comforting for the unsuspecting investing public to believe that index investing is a "better, nobler" way, but the numbers do not lie.
Market timing absolutley works, active management absolutley works, but then folks would have to admit that it isn't as easy as this author would make you think it is to make money investing.
This author would have people believe that markets are efficient and that buying assets on the way down is a wise investment choice...How is any investment with negative returns for the rolling 1, 3, 5, 10 year period a good investment? It isn't
Index investing is a bill of goods sold to the unsuspecting public...
If "stock-picking" and "market-timing" don't work explain that to hedge fund managers who shorted the indexes to gains last year, and are profitable again this year in a rising market...
To truly participate profitably in the markets one needs to understand how to profit in rising and decling markets...
Let's not confuse brains with a bull market..Let's see the stats for index investing over the last 10 years, not very inclined to sell alot of index funds...
Bottom line, if market timing doesn't work, ask where index investors would be if they sold 2 years ago, and more importantly didn't buy all the way down...
Not a very popular stance, but the facts are the facts - the author is right about one things - financial firms all have a sales pitch to get your money, including the author's company - they are all cut from the same cloth, some arrive in different packaging though.
The title suggests this book is about investing. Well there is a lot more to invest in than index funds. Apparently the author has not heard of some of the more arcane investments such as stocks or options but you would not know it from reading this book.
The book starts out telling you how the stock market is a zero sum game and how you can't beat the market. Then it tells you your only hope is to buy into an index fund and hold for the long term if you want any chance of coming out ahead. Then in the remaining 230 pages it repeats the points and quotes other well known investors in an effort to give the author an ego boost. And the quotes are dated and incomplete. For example he attributes a quote to former hedge fund manager Jim Cramer about how wonderful index funds are and how brilliant Bogle is. Well if you watch Mad Money or have read Jim Cramers books you know he urges people to invest in index funds if they have less than $10K to invest in the stock market or don't have the time to do the homework involved in owning a stock. If you have over that limit he urges you to invest in the market because with discipline and homework you will be able to beat the index funds.
Overall I am very unimpressed with this book. If you want to read a book about investing I suggest any of these books. All of these books are excellent and provide you with the information you need to be a successful investor. And if you only want one to start I suggest the book by Mizrahi as it is outstanding.
Getting Started in Value Investing (Getting Started In.....)
Jim Cramer's Mad Money: Watch TV, Get Rich
Jim Cramer's Real Money: Sane Investing in an Insane World
The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market
The book's title somewhat overreaches, though, given its almost exclusive focus on index funds. The title implies a broader perspective on investing, whereas the laser-like focus is on index funds. As a result, I personally have a "truth in advertising" issue with the book.
Second, the book is a one-idea treatise that beats the dead horse again and again and again to the point where it is overkill and repetitious.
These are relatively small quibbles. Anyone holding investments or considering embarking on an investment program should read THE LITTLE BOOK OF COMMON SENSE INVESTING, subject to these two caveats.