The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)

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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. By using the Web site, you confirm that you have read, understood, and agreed to be bound by the Terms and Conditions. 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.

If you want to stop them, drop everything, read this marvelous little book,and take it to heart; your children, and their children's children, will thank you. In this book, Bogle backs his theory up with simple, easy to understand mathematical concepts and with statistics from the market's history. This would be a great book to start since this book was written for normal people, not financial specialists. 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. He had been associated with a predecessor company since 1951, immediately following his graduation from Princeton University, magna cum laude in Economics.

He created Vanguard in 1974 and served as Chairman and Chief Executive Officer until 1996 and Senior Chairman until 2000.

With The Little Book of Common Sense Investing as your guide, you’ll discover how to make investing a winner’s game: You’ll also find warnings about investment fads and fashions, including the recent stampede into exchange traded funds and the rise of indexing gimmickry.I would recommend the book for anyone who wants to start investing but doesn't want the headaches and the more technical stuff.

My favourite phrase of the book was "if the data shows that index funds aren't better, the data is wrong". That said, the book gives very clear examples of why an index fund can be generally expected to beat the alternatives, and provides an excellent argument for why this should be one of the main investment tools for everyone except die-hard gamblers. Step by step, and through the relentless application of real-world performance numbers and statistics, Bogle shows investing for what is it is - a zero sum game where people who don't index, take money from each other while also paying the entire industry that is in place to chase mythical outperformance via mutual funds.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.