A Little Book of Common Sense Investing by John Bogle

edited June 2013 in Awesome Books
A Little Book of Common Sense Investing by John Bogle I have an account through work that only lets you invest in mutual funds and this book was a huge help. Even though he is the founder of Vanguard he gives great insight on the effects of fees and compound returns. He gives a very detailed view and what he thinks is the best way to get your share of market returns and backs it up with humble arithmetic. I found it on Amazon. Dougie Link to the book on Amazon: [url=http://www.amazon.com/gp/product/0470102101/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0470102101&linkCode=as2&tag=pypull-20&linkId=H6EWTKD3AHE6YBWS]http://www.amazon.com/gp/product/047010 ... D3AHE6YBWS[/url]

Comments

  • John Bogle is a very impressive investor. I haven't read this book, but I'm sure it contains valuable information. -Preston
  • One of Stig and Preston's guests recommended this book and it was possibly the first investing book I read.

    It is remarkable and jaw dropping in its total annihilation of mutual funds. From memory, it strongly advocates, for the average investor, investing in a broad market cap weighted index and little else. The mathematical basis, or "humble arithmetic" as John Bogle calls it supporting his stance is compelling to say the least. In addition I recall, and please correct me if I am wrong, Preston advocating indexing for those not fully immersed in the nuances of value investing.

    After reading this book and taking into account Preston's advice I had no sooner started learning about value investing as I was ready to forget it, buy an index fund (when the market was at low) and leave it at that. However, the one thing that I wasn't sold on was "a cap weighted index" - this didn't make sense to me as the "logical" way to weight a fund and so my education and participation in value investing continued...

    In my opinion it is a great book; a quick read and highly recommended even successful long term investors - why? The theme is simplicity; something I feel should not be forgotten.
  • The book has good comparison between active and passively managed funds.

    One of the disadvantages of index funds is that they buy high and sell low.
    So it doesn't make sense to fund when the market is down.

    Yes, there is simplicity in that you have to fund it and wait and wait and wait
  • We'll check this book out. Thanks for the recommendation.
  • I just picked up "The Little Book of Behavioural Investing" at the second hand store along with A Random Walk Down Wallstreet.

    I remember one of the guests had recommended one of The Little Book series so I looked at reviews on Amazon and picked up this one on Behavioural investing but I am just realizing now it is a different author James Montier.

    Has anyone read this title?
  • edited January 7
    Hi Ghazel,

    Yes, I read the books you mentioned.

    You have inadvertently picked up in my opinion a far more powerful and useful book in "The Little Book of Behavioural Investing"... it largely takes the research sited in Thinking Fast and Slow and applies it more specifically to investing.

    From memory A Random Walk Down Wall Street is another book touting the Efficient Market Hypothesis (EMH)... while the author makes a structured series of arguments against active management ultimately there is too much evidence against his beliefs. If EMH were true Buffet along with other market beating investors would be figments of our imagination. Still worth reading so you can research counter arguments to his claims.

    Kind regards,
    G
  • Anything by John Bogle is amazing. I thoroughly recommend it.
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