Description
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—after the substantial costs of investing are deducted, it becomes a loser’s game. Common sense and history confirm 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 your fair share of stock market returns.
To learn how to make index investing work for you, there’s no better mentor than John C. Bogle. Over his long career—founder of the Vanguard Group and creator of the world’s first index mutual fund—Bogle relied primarily on index investing to help Vanguard’s clients build substantial wealth. Filled with in-depth insights and practical advice, The Little Book of Common Sense Investing shows you how to incorporate this proven investment strategy into your portfolio and can change the way you think about investing.
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.
Investing is about common sense: successful investing requires discipline and patience, but it can be simple. With The Little Book of Common Sense Investing as your guide, you’ll discover how to make investing a winner’s game.
Endorsements
“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. Most advisors, however, are far better at generating high fees than they are at generating high returns. In truth, their core competence is salesmanship. Rather than listen to their siren songs, investors – large and small – should instead read Jack Bogle’s The Little Book of Common Sense Investing.” — Warren Buffett, Chairman of Berkshire Hathaway (2014 Annual Shareholder Letter).