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

Product Information

That said, the book gives very clear examples of why an index fund can be generally expected to beat the alternatives, and provides an excellent argument for why this should be one of the main investment tools for everyone except die-hard gamblers. He had been associated with a predecessor company since 1951, immediately following his graduation from Princeton University, magna cum laude in Economics. You’ll also find warnings about investment fads and fashions, including the recent stampede into exchange traded funds and the rise of indexing gimmickry. There are a few investment managers, of course, who are very good though in the short run, it s difficult to determine whether a great record is due to luck or talent. To learn how to make index investing work for you, there’s no better mentor than legendary mutual fund industry veteran John C.

The whole book can be summarized in one sentence: index ETFs are better than mutual funds because they track the whole (or a good chunk of the) market and have very low costs. The sole minus point is that it is very repetitive, reiterating on the same point from different angles.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! In the context of mutual funds, it is also important to note the Expense Ratio (ER) which includes the cost attributed to managing and operating the active fund. Arithmetic is the first of the sciences and the mother of safety and that costs makes the difference between investment success and failure.

It contains just the right amount of empirical evidence in the form of statistics, graphs, and charts to be convincing, but not eye-glazingly boring.

The book is also aimed at an American investor and some of the tenets praised by the author are not that relevant for someone living in a different part of the world. My mentor, Ben Graham, took this position manyyears ago, and everything I have seen since convinces me of its truth. After creating Vanguard in 1974, he served as chairman and chief executive officer until 1996 and senior chairman until 2000. This strategy is favored by Warren Buffett, who said this about Bogle: "For decades, Jack has urged investors to invest in ultra-low-cost index funds. You can change your choices at any time by visiting Cookie preferences, as described in the Cookie notice.