by Bogle, John C. :: The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of St-Hardcover

by John C. Bogle

Brand New

Genres: Finance

Unknown Binding

About the author

John Clifton "Jack" Bogle (born May 8, 1929) is the founder and retired CEO of The Vanguard Group. He is known for his 1999 book Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor, which became a bestseller and is considered a classic.
More on http://en.wikipedia.org/wiki/John_C._...

Reviews

[Alex Pellicci · Rating 4 out of 5]

7/10. Extremely repetitive, both in isolation and considering I had just read “Winning the Loser’s Game”, which talks about the exact same stuff. Emphasizes that 90% of MFs, both active equity and active fixed income funds, underperform their benchmark indexes. Goes on for 300 pages about the superiority of indexing and inferiority of active management

Explains investment return vs speculative return, which comprise market return. Since 1900, market return has been 9.5% per year.

Investment return = earnings growth + dividend yield
Speculative return = PE multiple expansion/contraction

Of the 9.5%…
4.6% has come from earnings growth
4.4% from dividend yield
0.5% from PE expansion

In the long run, speculative return is almost nothing, but it drastically sways the decade to decade returns. Decades most affected by speculative returns:

1940s: -6.3%
1950s: +9.3%
1970s: -7.5%
1980s: +7.7%
1990s: +7.2%

[Paula · Rating 3 out of 5]

The advice is 5 stars, but unless you need convincing that low cost index funds are the way to go - you really don’t need to read this book.

[Tony K. · Rating 5 out of 5]

A must read for any investor. Essential and wise. Just not “sexy”.

[Matt Wilson · Rating 5 out of 5]

Straight and to the point. Logic-oriented steps that break down investing and sum it up into an easy to understand takeaway: use index funds. Specifically, total stock market index funds that track the S&P 500. Bogle breaks down the reasoning for not trying to speculate or use other people's speculation (fund managers) to manage your money. The more managerial/fund fees you incur the more returns you are missing out on. Instead, opt for a traditional index fund, set it and forget it, and watch your money grow.

At the end of the book he also goes over a few asset allocation principles and how people should frame their decision around risk tolerance as well as briefly discussing how social security plays a role in things for retirees.

All-in-all, a great read for anyone new to investing or if you need a concise reminder of how to stay on track.

[Shu Yi]

Tdlr: buy low fee index funds. Don’t panic sell. Time in the market > timing the market. Don’t buy mutual funds. You’re welcome

[Ilib4kids]

332.6327 BOG 2017, 10th anniversary edition
eAudio

3"I'
--incremental
--imperfect
--implementable

[Gregory Roberts · Rating 4 out of 5]

A really good book on investing. Straightforward, simple advice that should be followed.