The Little Book of Common Sense Investing : The Only Way to Guarantee Your Fair Share of Stock Market Returns
Updated with current data and laced with two new chapters on asset allocation and retirement investing, the new Little Book of Common Sense Investing gives you a solid strategy for building your financial future. * Build a broadly diversified, low-cost portfolio without the risks of individual stocks, manager selection, and sector rotation * Forget the fads and focus on what works in the real world * Emphasize business reality over market expectations * Understand how index investing is the only game that assures your fair share of stock market returns Too many investors trade franticly, turning a winners game into a losers game, while index investing allows you to sit back and let the market do the work for you. Learn how to harness the magic of compounding returns while avoiding the tyranny of compounding costs. Bogle describes his simple method for developing rational expectations for future market returns, and what he sees coming over the next decade. The Little Book of Common Sense Investing is the guidebook to your financial future.
- Hardback | 304 pages
- 131 x 185 x 21mm | 358g
- 07 Dec 2017
- John Wiley & Sons Inc
- New York, United States
- Updated and Revised
Other books in this series
07 Dec 2017
01 Oct 2006
14 Jan 2013
24 May 2020
The Bestselling 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 The Little Book of Common Sense Investing 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 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 also 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.
Back cover copy
"Jack Bogle's remarkable career spans the spectrum from lonely iconoclast to celebrated rock star. His conception and development of index funds transformed the investment world for individuals and institutions alike. Countless millions of investors have purchased index funds because of Jack. But, simply being an indexer is insufficient. Successful investors embrace the principles undergirding the rationale for index funds and understand the pitfalls hindering the effective execution of an investment plan. The Little Book of Common Sense Investing provides the tools required to implement a winning portfolio strategy. Read it and win!"
--DAVID F. SWENSEN, Chief Investment Officer, Yale University
"What Gutenberg was to the printing press, Henry Ford to the automobile, and Shakespeare to the English language, Jack Bogle is to finance. The Little Book of Common Sense Investing packs into 270 short pages the distilled genius of the nearly seven decades he's spent revolutionizing the process for everyone, from the smallest IRA holder to the largest pension and endowment funds. Read, enjoy, and profit."
--WILLIAM J. BERNSTEIN, bestselling author of The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between
"One hundred years from today, historians will remember only two investors from this era--Warren Buffett and Jack Bogle. The two books they will note? Buffett's bible, Ben Graham's The Intelligent Investor, and . . . anything written by Jack Bogle. In a world of investment foxes, Jack remains a stalwart hedgehog. The Little Book of Common Sense Investing, updated here, will prove timeless as it thoughtfully articulates Bogle's one big idea--how investors can get their fair share of market returns."
--STEVE GALBRAITH, Managing Member, Kindred Capital
"Jack Bogle's thin Little Book is thick with wisdom. It's informative, insightful, and opinionated-- with the added advantage of being correct! As Bogle explains, the road to investment failure is paved with expensive advice, expensive investments, and expensive advertising (urging you to buy the first two). Bogle suggests a very different course for investors, virtually guaranteeing investment success."
--TED ARONSON, CFA, founder, AJO
Table of contents
Chapter One A Parable 1
Chapter Two Rational Exuberance 9
Chapter Three Cast Your Lot with Business 25
Chapter Four How Most Investors Turn a Winner's Game into a Loser's Game 39
Chapter Five Focus on the Lowest-Cost Funds 53
Chapter Six Dividends Are the Investor's (Best?) Friend 65
Chapter Seven The Grand Illusion 73
Chapter Eight Taxes Are Costs, Too 85
Chapter Nine When the Good Times No Longer Roll 93
Chapter Ten Selecting Long-Term Winners 111
Chapter Eleven "Reversion to the Mean" 127
Chapter Twelve Seeking Advice to Select Funds? 139
Chapter Thirteen Profit from the Majesty of Simplicity and Parsimony 153
Chapter Fourteen Bond Funds 167
Chapter Fifteen The Exchange-Traded Fund (ETF) 179
Chapter Sixteen Index Funds That Promise to Beat the Market 195
Chapter Seventeen What Would Benjamin Graham Have Thought about Indexing? 209
Chapter Eighteen Asset Allocation I: Stocks and Bonds 223
Chapter Nineteen Asset Allocation II 237
Chapter Twenty Investment Advice That Meets the Test of Time 259
About John C. Bogle