Little Book of Common Sense Investing by John Bogle
The Little Book of Common Sense Investing by John C. Bogle is a book that advocates for using index funds when investing. The author argues that actively managed funds are expensive and often underperform the market, while few funds perform well, and there’s no guarantee even those few will continue to do so. Most people invest in actively managed funds unaware of all the implications. Instead, the advice is simple: invest in a broad market index fund and hold for the long term.
The book provides a detailed overview of two different investment options: actively managed funds and index funds. These blinks explain why it’s better to put your money in a low-cost index fund instead of making risky, high-cost investments in wheeling-and-dealing mutual funds. Bogle’s gentle prose contains idiot-proof advice for investors at all levels. He punctures the myth of the superiority of mutual funds and instead declares that by using a bit of common sense, low-cost index funds are the way to go for most modest stock investors.
What I Liked
I’m a huge fan of Jack Bogle. He’s a model for success. This is is truly the one and only investing book that non-professionals should read. The idea is to buy a fund which then buys shares of every company in the market. It allows anyone to get market returns for a very cheap price. Absolutely brilliant financial innovation. The book explains that concept in very simple language. Love it.
What I Did Not Like
Nothing!
- Advocates for low-cost index funds over expensive actively managed funds
- Provides simple, idiot-proof advice for investors at all levels
- Explains complex concepts in very simple language
- Nothing!
