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Loading... The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Book, Big Profits) (original 2007; edition 2007)by John C. Bogle
Work InformationThe Little Book of Common Sense Investing by John C. Bogle (2007)
   None No current Talk conversations about this book.  MXMLLN | Jan 12, 2024 |   Book summed up in 1 sentence: Invest in indexes with low expense ratios, low turnover costs and sales charges (e.g. VOO, VTI). Here are some other takeaways so you don't have to read this book: -Inflation and expense ratios can diminish the after-cost return, which factors in expense ratio, sales charge, and turnover costs. These costs are too large to be ignored. For instance, a 9.5% return could very quickly result in a real return of 4.5% after 2% expenses and 3% inflation. Another thing to consider is that as costs increase, so does volatility and risk—where volatility is a measure of risk. This measurement can be used to calculate the risk-adjusted return. -Low-cost index funds negate these effects with expense ratios as low as 0.04% and leave you with the fair share of low-cost equity returns: they outperform high-cost index funds and actively managed mutual funds after all factors considered. Note that the reason mutual funds carry higher expense ratios is since they require more hands-on management. -“In the short run the stock market is a voting machine…in the long run it is a weighing machine.”-Benjamin Graham -Don't look for the needle; buy the haystack (  )1  siamm | Aug 20, 2023 | I would have liked more discussion of asset allocation than just the few pages in the last chapter (although to be fair it is a short book) and I thought that the author was overly dismissive of Exchange Traded Funds (ETFs). He's also not shy in name-dropping his own company Vanguard and their range of index funds. (Vanguard are an extremely impressive company however !) Overall, this book is interesting reading and achieved its aim of convincing this reader. Worth buying. (  ) JamieStarr | Jul 15, 2023 | ) pollycallahan | Jul 1, 2023 | ) OccassionalRead | Sep 30, 2021 | no reviews | add a review
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HTML: The best-selling 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 Little Book of Common Sense 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 in 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 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. .No library descriptions found. |
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 Google Books — Loading...GenresMelvil Decimal System (DDC)332.6327Social sciences Economics Finance Investing Personal Investing Types Of Investments And Other Topics FundsLC ClassificationRatingAverage: (3.88)
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Wikipedia in English (2)
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Prose: 8.5
Content density: 8.5
My first investing book. Highly recommended, though the main premise of investing in low-cost index funds can be a bit repetitive at the beginning. Don't worry, it gets better. (