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

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.

JOHN C. BOGLE is founder of the Vanguard Group, Inc., and President of its Bogle Financial Markets Research Center. He created Vanguard in 1974 and served as chairman and chief executive officer until 1996 and senior chairman until 2000. In 1999, Fortune magazine named Mr. Bogle as one of the four "Investment Giants" of the twentieth century; in 2004, Time named him one of the world’s 100 most powerful and influential people, and Institutional Investor presented him with its Lifetime Achievement Award.

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All Customer Reviews
Average Customer Review:
0 of 0 people found the following review helpful:

Another great book from Mr. Bogle, 2008-05-14
Mr. Bogle has done more to help the common investor than anyone. This book is a must read for anyone new to investing. It will be the only book you will need to read to have a good understanding of how to invest effectively. It is a condensed version of Bogle on mutual funds and easier to read.


0 of 0 people found the following review helpful:

Common Sense, 2008-04-11
By the end of this book, it really will be common sense to you that investing in index funds is the best idea for your retirement. The facts are laid out and the point is hammered home. You certainly can't go wrong with the advice contained in this book.

However, if you desire a little more excitement (and potential returns) in your investing adventures, you will want to broaden your horizons a bit more.


0 of 0 people found the following review helpful:

A Great Book for the Average Investor, 2008-04-05
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Book Big Profits)

This is a fine book for most investors. It is easy to read and gives the reader an investment philosophy which will be invaluable if followed in the future. I recommend this book highly.


0 of 0 people found the following review helpful:

The Little Book of common Sense Investing:, 2008-04-02
I liked this book a great deal, and found it very informative. I have changed the way I invest because of this book. I recommend it highly.


1 of 1 people found the following review helpful:

The narrow focus on how sensible it is indeed to invest in index funds tends to understate stock market risk itself , 2008-03-11
In the introduction it is stated that: "Only stock market risk remains." (if you invest in index funds). The "Only" should have been been a big BUT. On page 69 Mr. Bogle writes: "Common sense tells us that we are facing an era of subdued returns in the stock market." This would have been a good place to add that index funds could in fact also guarantee you your fair share of devastating loses for a decade or two. It has happened before.
In 1990 the Japan Nikki 225 was about 40,0000. 13 years later in 2003 it was about 8,000. A decline of 80%. In 2008 it has increased by 62% to about 13,000 but still down a stunning 68%, 17 years after the peak in 1990. And here and now in America the stock market, index funds and all, is trading where it was nine year ago. The S&P 500 - stock index finished at 1352.99 on March 25, 2008, below the 1362.80 it was in April 1999. Since 1999 gold has had an annualized total return on investment of 14.51% and real estate (REITs) 14.11% (see March 26,2008 WSJ for more details). A recession and stagflation could could cause the decline to go on and on but no one knows. During the Great Depression stocks lost 90% of their value and then took 25 years to recover.
This is a fine book but the focus on just stocks and bonds, common sense should tell you is too narrow. It makes sense to be more broadly diversified. Hard assets like gold and sensibly priced (monthly rent 1% of price) income property that will protect you when index funds continue to let you down down down.
Today when I become a little sad from looking at how my index funds are doing I get cheered by reading my property manager's report about my investment in half a dozen condominiums (in fact they make me so happy I wrote a how-to book about them) and by looking up the price of gold.

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