Little Book of Common Sense Investing

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The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns
BogleLittleBookCover.jpg
Author John C. Bogle
Language English
Genre Investing
Publisher John Wiley & Sons
Publication date
2007
Pages 216 (1st ed) 307 (2nd ed)
ISBN 978-1-119-40450-7 1st edition's ISBN 978-0-470-10210-7
OCLC 76871376
332.63/27 22
LC Class HG4530 .B635 2007

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns is a 2007 and 2017 book on index investing, by John C. Bogle, the founder and former CEO of the Vanguard Group. He focuses on index funds, which will give the investor the average market return, and on keeping investing costs low, so that the index fund investor will consistently do better than other investors, after costs. Trying to beat the market "is a loser's game," according to Bogle and "the more the managers and brokers take, the less investors make."[1]

On October 16, 2017 a 2nd updated & revised 10th Anniversary Edition was published. The new edition features updated charts & data up until the year 2016, and a new introductory chapter.

Overview[edit]

This is the sixth book by Bogle, and he writes 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." Bogle maintains that the "classic index fund" that owns this market portfolio is the only investment that guarantees a fair share of stock market returns. The book elaborates on the same practice of index investing that Bogle built the Vanguard Group around to turn a profit for clients.

  1. Why Bogle thinks that business reality—dividend yields and earnings growth—is more important than market expectations
  2. How to overcome the impact of investment costs, taxes, and inflation
  3. How compounding returns are overwhelmed by the compounding costs
  4. What several investors and academics—from Warren Buffett and Benjamin Graham to Paul Samuelson and Burton Malkiel—have to say about index investing.

A handful of errors have been identified and corrected in an errata sheet posted to the author's website.

Wiley series[edit]

This is the third book in Wiley's "LITTLE BOOK. BIG PROFITS." series. The series includes The Little Book That Beats the Market by Joel Greenblatt (Wiley, 2005), ISBN 978-0-471-73306-5 and The Little Book of Value Investing by Christopher H. Browne (Wiley, 2006), ISBN 978-0-470-05589-2

The series focus is to present finance strategies in general and understandable terms.

Online[edit]

Bogle, John Bogle (2007). The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns. John Wiley and Sons. p. 216. ISBN 9780470102107. 

References[edit]

  1. ^ Hannon, Kerry (April 8, 2007). "Review: Index funds are 'Common Sense'". USA Today. Retrieved March 10, 2011.