The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)
by John C. Bogle
List Price:
Our Price: $9.64
You Save: $13.31 (58%)
Availability: Usually ships in 1-2 business days
Buy Used: from $0.49 (click here)
Category: Book
See more book details and other editions
Book Summary Information
Author: John C. BogleEdition: Hardcover
Audio: English (Unknown); English (Original Language); English (Published)
Published: 2007-03-05
ISBN: 0470102101
Number of pages: 216
Publisher: Wiley
Book Reviews of The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)
Book Review: Common sense in a market of deception
Summary: 5 Stars
Summary (To save you time):
If you want to retire early and financially wealthy you'll go a long way to beat this book. your first investment should be this book and then the markets. John Bogel provides a clear and concise text on how to make a good (If unexciting) return.
This book is accessible, factually based, informative and small enough to read quickly. There is no heavy analysis or huge amount of brain power required.
Review:
What makes a good investing book? It always seems to be the promise of riches and excitement. Well good luck most of the exciting stock picking methods lead to bankrupcy.
What should make a good investing book? Hows about something that can actually work?
Please bear in mind at this point that if a stock picking method cannot be rationaly explained as to why it works the chances are its garabge. One method that was well explained is Value Investing. Unfortuantely these days you are up against computers that can analyse all world wide stock markets in real time - chances are you won't win.
In a market of hype about the "Latest" and "Greatest" stock picking method John Bogel has written a book based on common sense. Inevitably all investors in a market must on average gain returns equal to the market, less costs (Forget these at your peril).
In recent years Wall Street has made $400 Billion per year in those costs (Thats right they won and you lost before your money even went into stocks). Hows about keeping that money and still investing and getting a fair (Average) share of returns? Sound boring? Well the best way isn't always the most exciting.
Through humble arithmatic John Bogel convinces you of the value and sense in a low cost index tracking fund.
Each chapter finishes whith people who endorse indexing. The likes of Warren E. Buffet, Charlie Munger, Charles Schwab, etc (Who all know more about investing than I ever will) endorse indexing. Thats good enough for me.
As a quick explanation of the aritmetic (I made these numbers up, they're not from the book, but they are mathematically accurate) and why it should convince you:
Assume the stock market returns 10% per year, you have 100% portfolio turnover per year, 2% costs (Very low) and 40% taxes (which is about right in GB where I live). If you have a system to beat the markets you need a return of 10% or more as well. So 10% return + 2% costs + 40% taxes =
(10 + 2) / 0.6 = 20%. Well good luck! Your system needs to double market returns. Hint: One reason Warren Buffet is able to beat the markets is he has very low portfolio turnover (Thus avoiding many taxes).
So are there down sides to this book?
Well Yes, there always are. Inevitable John Bogel uses the Vanguard S&P 500 index tracker (From his own company) as an example. He mentions others but not very often. So it sometimes feels a little like a sales exercise in places. However never so much that it detracts from the point. And I am a cynic who is always looking to disprove (Or even disapprove) of what I read.
Also indexing doesn't offer you very much excitment. However I can counter that with I want to retire early, not late (And broke) in life knowing I had fun in the markets.
Lastly I haven't read all the books out there and there may well be better for me yet to discover. As far as I personally have read this book tops the list though.
Resummary:
Not exciting but so well worth the money, unlike most of the garbage out there. As for most stock picking methods please remember you are taking on the best and brightest on Wall Street and their computers. They still lost huge regularly (In recent years lets all remember 2000-1, 2003, 2007-8, each time we witnessed in the region of a 40% crash in the markets). If they fail why can you or I do better? I'll stick to boredom and a fair return.
As a final endorsement of what John Bogel writes about, when companies make investments that they have to all but guarantee returns on (Pensions etc), they invest in the manner described in this book. They just don't advertise it, but if you want a good safe return guess what...
More The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits) reviews:
1 2 3 4 5 6 7 8 9
1 2 3 4 5 6 7 8 9
Summary of The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)
Investing is all about common sense. 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 (for every winner, there must be a loser), but after the substantial costs of investing are deducted, it becomes a loser?s game. 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. The classic index fund that owns this market portfolio is the only investment that guarantees you with your fair share of stock market returns.To learn how to make index investing work for you, there?s no better mentor than legendary mutual fund industry veteran John C. Bogle. 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. Now, with The Little Book of Common Sense Investing, he wants to help you do the same.
Filled 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. It will also change the very way you think about investing. Successful investing is not easy. (It requires discipline and patience.) But it is simple. For it?s all about common sense.
With The Little Book of Common Sense Investing as your guide, you?ll discover how to make investing a winner?s game:
- Why business reality?dividend yields and earnings growth?is more important than market expectations
- How to overcome the powerful impact of investment costs, taxes, and inflation
- How the magic of compounding returns is overwhelmed by the tyranny of compounding costs
- What expert investors and brilliant academics?from Warren Buffett and Benjamin Graham to Paul Samuelson and Burton Malkiel?have to say about index investing
- And much more
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. And that?s what this book is all about.
JOHN C. BOGLE is founder of the Vanguard Group, Inc., and President of its Bogle Financial Markets Research Center. He created Vanguard in 1974 and served as chairman and chief executive officer until 1996 and senior chairman until 2000. In 1999, Fortune magazine named Mr. Bogle as one of the four "Investment Giants" of the twentieth century; in 2004, Time named him one of the world?s 100 most powerful and influential people, and Institutional Investor presented him with its Lifetime Achievement Award.
Finance Books
Book Subjects
- Arts & Photography
- Biographies & Memoirs
- Business & Investing
- Children's Books
- Comics & Graphic Novels
- Computers & Internet
- Cooking, Food & Wine
- Entertainment
- Gay & Lesbian
- Health, Mind & Body
- History
- Home & Garden
- Horror
- Law
- Literature & Fiction
- Mystery & Thrillers
- Nonfiction
- Outdoors & Nature
- Parenting & Families
- Professional & Technical
- Reference
- Religion & Spirituality
- Romance
- Science
- Science Fiction & Fantasy
- Sports
- Teens
- Travel
Most talked about in Finance Books
The Complete Idiot's Guide to Beating Debtby Steven D. Strauss
Alpha; Published: 1999-11-18; Mass Market Paperback; Book
Best price: $0.01
Price in other shops:
The Complete Idiot's Guide To Wills And Estatesby Steve Maple
Alpha Books; Published: 1997; Paperback; Book
Best price: $0.01
Financial Management and Recordkeeping: Activity Guide and Working Papers IIby McGraw-Hill
Glencoe/McGraw-Hill; Published: 1993-08-26; Paperback; Book
Price in other shops:
The Panic of 1907: Lessons Learned from the Market's Perfect Stormby Robert F. Bruner, Sean D. Carr
Wiley; Published: 2009-04-27; Paperback; Book
Best price: $9.37
Price in other shops:
Financial Institutions, Markets, and Moneyby David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard L. Peterson
John Wiley & Sons Inc; Wiley; Published: 2008-01-14; Hardcover; Book
Best price: $28.25
Financial Accounting: Reporting and Analysisby Earl K. Stice, James Stice, Michael Diamond
South-Western College Pub; Published: 2001-12-28; Hardcover; Book
Best price: $11.65
Price in other shops:
The Money Book for the Young, Fabulous & Brokeby Suze Orman
PBS; Penguin Audio; Published: 2005-03-03; Audio CD; Book
Best price: $16.04
Price in other shops:
Money, Banking and Financial Marketsby Stephen Cecchetti
McGraw-Hill/Irwin; Published: 2007-08-17; Hardcover; Book
Best price: $34.62
Understanding Financial Statementsby Lyn M. Fraser, Aileen Ormiston
Prentice Hall; Published: 1997-11-20; Paperback; Book
Best price: $31.16
Price in other shops:
Foundations of Financial Management (The Irwin Series in Finance, Insurance, and Real Estate)by Stanley B. Block, Geoffrey A. Hirt
Mcgraw-Hill College; Published: 1999-07-01; Textbook Binding; Book
Best price: $29.46
Price in other shops:
Similar Books and other products
The Truth About Money 4th Editionby Ric Edelman
HarperBusiness; Published: 2010-12-21; Paperback; Book
Best price: $7.66
Price in other shops:
The Little Book That Still Beats the Market (Little Books. Big Profits)by Joel Greenblatt
Wiley; Published: 2010-09-07; Hardcover; Book
Best price: $10.72
Price in other shops:
Don't Count on It!: Reflections on Investment Illusions, Capitalism, "Mutual" Funds, Indexing, Entrepreneurship, Idealism, and Heroesby John C. Bogle
Wiley; Published: 2010-11-02; Hardcover; Book
Best price: $14.50
Price in other shops:
The Richest Man in Babylonby George S. Clason
Signet; Published: 2002-01-01; Mass Market Paperback; Book
Best price: $4.89
Price in other shops:
Common Sense on Mutual Funds: Fully Updated 10th Anniversary Editionby John C. Bogle
Wiley; Published: 2009-12-02; Hardcover; Book
Best price: $16.22
Price in other shops:
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Completely Revised and Updated)by Burton G. Malkiel
W. W. Norton & Company; Published: 2011-01-10; Hardcover; Book
Best price: $18.59
Price in other shops:
The Bogleheads' Guide to Retirement Planningby Taylor Larimore, Mel Lindauer, Richard A. Ferri, Laura F. Dogu
Wiley; Published: 2011-02-22; Paperback; Book
Best price: $8.40
Price in other shops:
The Only Investment Guide You'll Ever Needby Andrew Tobias
Mariner Books; Published: 2011-01-05; Paperback; Book
Best price: $4.12
Price in other shops:
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)by Benjamin Graham, Jason Zweig
Collins Business; Published: 2003-07-08; Paperback; Book
Best price: $8.94
Price in other shops:
The Bogleheads' Guide to Investingby Taylor Larimore, Mel Lindauer, Michael LeBoeuf
Wiley; Published: 2007-09-28; Paperback; Book
Best price: $9.70
Price in other shops: