How the magic of compounding returns is overwhelmed by the tyranny of compounding costs.How to overcome the powerful impact of investment costs, taxes, and inflation.Why business reality-dividend yields and earnings growth-is more important than market expectations.With The Little Book of Common Sense Investing as your guide, you’ll discover how to make investing a winner’s game: (It requires discipline and patience.) But it is simple. It will also change the very way you think about investing. Now, with The Little Book of Common Sense Investing, he wants to help you do the same.įilled 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. 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. To learn how to make index investing work for you, there’s no better mentor than legendary mutual fund industry veteran John C. The classic index fund that owns this market portfolio is the only investment that guarantees you with your fair share of stock market returns. 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. 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.

Owning a diversified portfolio of stocks and holding it for the long term is a winner’s game. 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. In truth, their core competence is salesmanship. Most advisors, however, are far better at generating high fees than they are at generating high returns. “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.

The common sense investing