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

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

Format:  Hardcover,

216 pages

Publisher: John Wiley & Sons Inc

Publish Date: Mar 2007

ISBN-13: 9780470102107

ISBN-10: 0470102101

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The following content was provided by the publisher.
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), but 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 expectationsHow to overcome the powerful impact of investment costs, taxes, and inflationHow the magic of compounding returns is overwhelmed by the tyranny of compounding costsWhat expert investors and brilliant academics--from Warren Buffett and Benjamin Graham to Paul Samuelson and Burton Malkiel--have to say about index investingAnd 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.


Publisher: John Wiley & Sons Inc
Publish Date: Mar 2007
ISBN-13: 9780470102107
ISBN-10: 0470102101
Format: Hardcover
Number of Pages: 216
Shipping Weight (in pounds): 0.6
Product in Inches (L x W x H): 6.25 x 7.5 x 0.75
Walmart No.: 470102101

Chapter outline

Introductionp. xi
A Parablep. 1
Rational Exuberancep. 9
Cast Your Lot with Businessp. 23
How Most Investors Turn a Winner's Game into a Loser's Gamep. 35
The Grand Illusionp. 49
Taxes Are Costs, Toop. 60
When the Good Times No Longer Rollp. 68
Selecting Long-Term Winnersp. 78
Yesterday's Winners, Tomorrow's Losersp. 89
Seeking Advice to Select Funds?p. 100
Focus on the Lowest-Cost Fundsp. 113
Profit from the Majesty of Simplicityp. 122
Bond Funds and Money Market Fundsp. 138
Index Funds That Promise to Beat the Marketp. 152
The Exchange Traded Fundp. 164
What Would Benjamin Graham Have Thought about Indexing?p. 176
The Relentless Rules of Humble Arithmeticp. 187
What Should I Do Now?p. 200
Acknowledgmentsp. 215


Review by Library Journal (2007-08-01)

Bogle (The Battle for the Soul of Capitalism) provides exemplary advice for investors interested in index funds. His solid, logical information is targeted at investors at all levels, and he deflates the myth of the superiority of mutual funds by explaining how common sense can help the average investor successfully manage low-cost index funds. As Bogle explains, owning a diversified portfolio of stocks for the long term is a winner's game, while trying to beat the stock market is a zero-sum game; after the substantial costs of investing are deducted, it becomes a loser's game.

The material explains why dividend yields and earnings growth are more important than market expectations, how to overcome the powerful impact of investment costs, taxes, and inflation, and what expert investors like Warren Buffett say about index investing. The solid narration by Thom Pinto keeps listener interest on Bogle's latest approach to long-term investing, which, while offering nothing extraordinarily new in the overly saturated financial advice genre, nicely represents more than 20 years of successful investment advice from a leader in this field. Highly recommended for university libraries supporting a business curriculum and larger public libraries.

-Dale Farris, Groves, TX

(c) Copyright 2010. Library Journals LLC, a wholly owned subsidiary of Media Source, Inc. No redistribution permitted.

Customer Product Reviews

Rated 4 out of 5★ by 1reviewer.
Rated 4 out of 5 must know info for all investors The overall message of the book is key for anyone investing. It is a good primer/abstract into/of other classic investing books that praise the importance of stock indexing, low costs and not trying to choose winners (or choose costly advisers that supposedly choose winners.)However, despite its short in length, the book feels a bit long and repetitive to read (that might be because I've read some of the classics carrying a very similar message.) 01/07/2009
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