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The Little Book of Common Sense Investing

3.98 of 5 stars 3.98  ·  rating details  ·  951 ratings  ·  132 reviews
John C. Bogle's The Little Book of Index Investing is a power-packed explanation of why outperforming the market is an investor illusion. Instead, the founder of The Vanguard Group--the man who's been called "the conscience of the investment industry"*--recommends a simple, time-tested investment strategy that can deliver the greatest return to the greatest number of inves ...more
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Published March 6th 2007 by Macmillan Audio (first published January 1st 2007)
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Chad Warner
After hearing so many references to John Bogle and his followers, the Bogleheads, I decided I had to read this book. The author, John Bogle, invented the index fund and founded Vanguard.

I really liked this book; it's one of the better investing books I've read. It contains just the right amount of empirical evidence in the form of statistics, graphs, and charts to be convincing, but not eye-glazingly boring. To back up his assertions, he points to "the relentless rules of humble arithmetic." Bog
I rate this book highly because it is a quick read and convincingly outlines some very important foundations of stock investing. I took two key points away from the book:

1. Minimizing fees by utilizing low-cost index funds will almost certainly be more profitable over the long term than actively managed funds. Yearly fees on some of the cheapest index funds are around .1% - Actively managed funds usually range from .7% - 2%.

2. Tax minimization is one of the most important factors in investment s
John Lee
Since this is a little book, I'll write a little review.

Good Parts:
The advice. It just makes sense, and Bogle does a good job of breaking down why index funds are a sound investment for almost everyone. I never felt lost in any financial jargon, which is impressive, as I know next to nothing about investing. The perspectives from other financial minds and academics were nice to read as well.

Bad Parts:
Repetitive. He makes the same (good) point over and over, and continually tries to convince the
Sad to say this was one of my first finance books, but happy to report that I picked up a good one. Bogle hammered in the idea of safe and steady investing through index funds and explained how over time, buying index funds that track the S&P 500 is the way to go. I appreciated the manner in which he explained how he started the first index fund at Vanguard, but didn't necessarily push his own product too much. Although my one complaint of the book was he repeated alot of the same concepts o ...more
I pretty much knew what I'd find in this book, and that I already agreed with it. I do find it helpful to remind myself of why I invest the way I do, and re-read the motivations and justifications for it. This book can get pretty tedious, but if you just read it quickly it goes fast.

The book spends nearly all its time convincing you that if you invest in stocks you should do so via an all-market index fund. It does not cover asset allocation, bonds, emergency funds, financial goals, time horizo
This is the 2nd time I read this book.

The author promoted some common sense behind indexing,

1. Market return is composed of investment return and speculative return; and over long term, speculative return can be ignored.
2. Indexing is better because of diversification and cost.
3. Simple is beautiful.

However, he also presented some biased opinions, intentionally or not.

In chapter 5, he said that (non-index) fund return and investor return are different because one is time-weighted and dollar-wei
Here's what you'll learn from this book:

The way you invest is by buying stocks, and then later selling them for a profit. There are two ways you can do this:

1. You can spend a lot of effort researching which stocks to buy. Or you can spend a lot of effort researching which mutual fund to invest in to pick stocks for you. Or you can spend a lot of effort researching which financial adviser to hire to pick funds to pick stocks for you.
It's possible to be very lucky, or very bright, or both, and pi
Bogle is the founder of the index fund and this book is his explanation of how index funds beat the market - and all other forms of investing - over time. The book is clear and concise, and most of all, convincing. We'll be giving a copy to all our nieces and nephews to help them with their investments.
After reading The Bogleheads Guide to Investing, this book was a bit repetitive, but since that entire book is basically dedicated to promoting this author's investing philosophy, that's my fault. All in all the book was rather more repetitive than the one I just mentioned, and I certainly didn't need convincing of Bogle's philosophy, so I was happy it was relatively short and quick to read. I did learn a few things, although for those that already believe in this way of investing this book woul ...more
I don't normally skim books, but the message in this one for rather repetitive... still, it's one that bears repeating: you probably can't reliably do a better job of picking stocks than an index fund that tracks an entire market, and neither can most mutual fund managers... and the fees they typically charge erode your potential earnings.

That said, there's more than one "market" to track... there are total US market index funds, bond market funds, international market funds, and more... but the
Joe Midgley
I haven't read up much on investing prior to this. I don't know if I would say this is a good book, but I would say it sounds like good advice from a guy who knows what he's talking about. So it's not something to read simply for the pleasure of reading it, but maybe if you don't know jack about investing and are looking to get started.

The whole book could have probably summed up in far less than 200 pages if you trust the guy. So much of the book was spent on building credibility "Don't take m
Jimmy Murphy
This book helped me better understand the world of investing and how to find investment success. Some of the key principles I learned in this book include:

1. Invest in the entire market through index funds, and hold them or the long term.

-This strategy allows you to get your fair share of the returns the our business enterprises yield in the years to come.

- index funds also minimize risk, (management risk, investment style risk) and leaves you only with market risk.

-index funds minimize cost. B
I read my first book on investing when I was under 10 years old. Actually, as I recall, I never finished it, but I struggled valiantly with it. When my grandmother found out about this, she accused my father of turning me into a terrible little capitalist, though in all fairness I had simply helped myself to the book from his bookshelves. Now, several decades later, and a number of investing books later, I find that I have advanced little in my practical mastery of one of the core lessons of inv ...more
The message here is very similar to that of "Bogle on Mutual Funds". Basically that, the aggregate of investors will do better with very low cost index funds than by trying to research and select individual stocks, funds, fund managers, or investment advice.

I admit I was impressed by the names of the people he cited who came out in favor of indexing for the average man. We're talking Charles Schwab (the man), Warren Buffet, Peter Lynch, the dork from Mad Money, professors, journalists, fund mana
หนังสือเล่มนี้ เหมาะสำหรับนักลงทุนเชิงรับ (Defensive Investor) ตามคำนิยามของเบน เกรมแฮม

Fortunately for the typical investor, it is by no means necessary for his success that he bring these qualities to bear upon his program— provided he limits his ambition to his capacity and confines his activities within the safe and narrow path of standard, defensive investment. To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.

Iowa City Public Library
John Bogle is one of the most respected investment writers in the business. Bogle, who founded The Vanguard Group, knows of what he writes. At Vanguard he pioneered no-load mutual funds along with introducing the first index fund* and his advice is to invest in index funds. The Little Book of Common Sense Investing: the only way to guarantee your fair share of stock market returns is all about how to become a better investor in 18 easy to understand chapters.

Bogle champions a simple approach to
This book is very readable and I highly recommend it.

I came across John Bogle's name when I read Benjamin Graham's "The Intelligent Investor" last year. Bogle had written a forward to Graham's latest edition of his respected classic.

I was curious about Bogle, and believe that he is just as old-school as Graham and Warren Buffet, believing in level headedness, common sense, convervativeness and simplicity when it comes to investment.

I am not surprised after reading this book. Bogle, former Chair
Here Bogle makes the case for index funds. The stock market, he explains, is a winners game, fueled by the growth and earnings of the worlds businesses. Beating the average returns of the market is, by definition, a zero-sum game--your chances are fifty-fifty. When one adds in the costs of investing, however, beating the market becomes a losers game. Expenses spent playing the game include "commissions, management fees, marketing costs, sales loads, administrative expenses, legal expenses, custo ...more
Ireney Berezniak
This title is perhaps not nearly as valuable to a Canadian investor, as the environment here is slightly different in comparison to that of USA, the country from which this book originates and targets. The author, John C. Bogle, preaches the benefits of classic index funds, not to be confused with exchange traded funds (ETFs), which in Canada are quite expensive, often commanding nearly 1% in management fees, or more, while in the USA, such funds can incur as little as 0.04% in fees.

Bogle sugges
Excellent. Bogle helped me to understand not only the basics of "the [stock] market", but much about how the vast world of mutual funds, fund managers and such operate. Albeit it a basic level, this book has provided me useful imagery as well as core ideas about sensible investing. Examples: "Don't look for the needle -- just buy the haystack." "If you imagine a chart of the entire history of U.S. companies' growth, if you squint, it will look like a nearly straight line gradually going up." "On ...more
Mika Auramo
Feb 08, 2010 Mika Auramo rated it 3 of 5 stars  ·  review of another edition
Recommends it for: rahastojen kuluihin kyllästyneille.
Shelves: sijoitus
Niin kuin kirjan alaotsikkokin väittää, sijoittaja turvaa pääomansa parhaiten käyttämällä yleisjärkeä. Se tarkoittaa tässä sijoittamista indeksirahastoihin, mielellään Vanguardin.

Kirja sopii hyvin johdannoksi niille, jotka ovat kyllästyneet sijoitusrahastojensa suuriin kuluihin ja siihen, että ne eivät ole pärjänneet vertailuindeksilleen.

John C. Boglehan on ensimmäisen varsinaisen indeksirahaston perustaja, ja hän käyttääkin Vanguard 500 indeksirahastoa esimerkkinä (monien muiden lisäksi). Indek
Preet Bhinder
Timeless advice specially in 2014 with the proliferation of fee based investment services like Betterment, Personal Capital which all claim to beat the market. The problem for me while reading the book was that I've already drunk the Kool-aid and all my investments are passive index based. Got bored pretty quickly while reading and skimmed through the pages most of which talk about how a low cost "Boglehead" approach is better. Highly recommended for a first time investor though.
Brilliant. Totally made sense. Meshed with everything my father taught me, and rounded it out, giving me a much more comprehensive and sound understanding. Found it very useful in investing for retirement, college, and the present. I'll check back in 30 years to see if I still feel the same way. So far, for the first two, in the midst of this bad recession, I'm right on track. Crystal clear for a person who wants to manage her own long term finances prudently.

It is indeed redundant, deliberatel
Richard Stephenson
Well I do say - if you're looking to be absolutely sure investing in an S&P 500 Index fund is a smart move... this is your book! I was already mostly convinced, but this little book really put the seal on the deal.

I do wish there was a bit more to the book than just every facet of investing in said fund. Granted, the last chapter or so really got around to fleshing out more varied portfolio information, so I'll give a little leeway there.

Had the book been retitled just a tad - it would have
Cristobal Ortuzar
Este libro entrega tips básicos para generar una estrategua de inversión a largo plazo. Entrega excelentes consejos y conceptos muy fáciles de entender.

Me quedo con las palabras al final del libro, palabras de Benjamin Franklin:
If you would be wealthy, think of Saving as well as Getting.... Remember that time is money.... Beware of little Expenses; a small Leak will sink a great Ship.... There are no Gains, without Pains.... He that would catch Fish, must venture his Bait... Great Estates may ve
Stanley Arthur
John C. Bogle, the man who originated the Index Fund concept and started the well known Vanguard Group in 1974 discusses the Index Fund concept in a brief, easily read book. After reading this small book you will probably find it difficult to justify investing in managed mutual funds.
Well worth the 3 hr investment of your time.
Ben Ernst
This book has a great, albeit painfully repetitive message: buy total market index funds as opposed to actively managed mutual funds to save money on fees as taxes and guarantee you'll do as well as the stock market as a whole. There--I just summarized the whole book. If you want to understand his reasoning, read the book.
Investing in and real estate seems exciting until bubbles burst and markets crash. When they do, you’ll be especially glad that you’ve read and implemented Bogle’s simple but time-tested and effective strategy. The text contains pithy wisdom presented in a straightforward style, some points repeated often. Most chapters contain a sidebar “Don’t Take My Word For It,” in which a famous or brilliant financial authority reinforces Bogle’s point. By the time you finish the book, the cumulativ ...more
Richard Gartee
Former CEO of the Vanguard Group investment company writes straight forward advice on getting the most back on your stock and bond investments. Will anyone listen? I think most people follow the siren's call of Wall Street and assume they are smart enough to predict what the professionals can't. If you have a 401k or IRA. Read what Bogle says.
Max Ong Zong Bao
Despite I hate to touch anything related to paper assets it's good to know about buying index funds besides the more common investment products founded by insurance agent, bankers, financial advisers or consultants
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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
More about John C. Bogle...
Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor Enough.: True Measures of Money, Business, and Life The Clash of the Cultures: Investment vs. Speculation The Battle for the Soul of Capitalism Bogle On Mutual Funds: New Perspectives for the Intelligent Investor

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“The grim irony of investing, then, is that we investors as a group not only don't get what we pay for, we get precisely what we don't pay for. So if we pay for nothing, we get everything.” 3 likes
“Don't look for the needle in the haystack. Just buy the haystack!” 3 likes
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