The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns

India Infoline News Service | Mumbai |

The author narrates an interesting parable of the Gotrocks family which was playing a winners game till some helpers came and ate into their profits. Get rid of brokers, consultants and money managers and get into a passive yet productive strategy.

Title: The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns
Author: John C. Bogle
Pages: 214; Hardcover
Publication Date: March 2007
Price: US$19.95 (This price is valid for India)
Published by John Wiley & Sons, Inc.

Successful investing is simple but not easy. The author narrates an interesting parable of the Gotrocks family which was playing a winners game till some helpers came and ate into their profits. Get rid of brokers, consultants and money managers and get into a passive yet productive strategy. That is what John C Bogle hammers into this book. The classic index fund that owns this market portfolio is the only investment that guarantees you with your fair share of stock market returns.

He is not one to be writing fairy tales as the Vanguard Fund founded by him has proved higher the level of investment activity, the greater the cost of financial intermediation and taxes… Over the course of his long career, Bogle, 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.

Each chapter concludes with a re-emphasis of the author’s view in someone else’s words aptly titled – Don’t’ Take My Word For It.

He advices investors to rely on the Occam’s Razon which states when there are multiple solutions to a problem, choose the simplest one.

The author minces no words in saying, if the data do not prove that indexing wins, well, the data are wrong.

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.

About the Author:

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.

About Wiley:

Founded in 1807, John Wiley & Sons, Inc. has been a valued source of information and understanding for over 200 years, helping people around the world meet their needs and fulfill their aspirations. Since 1901, Wiley and its acquired companies have published the works of more than 350 Nobel laureates in all categories: Literature, Economics, Physiology/Medicine, Chemistry, Physics and Peace.

Our core businesses include scientific, technical, medical and scholarly journals, encyclopedias, books, and online products and services; professional/trade publishes books, subscription products, training materials, and online applications and websites; and educational materials for undergraduate and graduate students and lifelong learners. Wiley's global headquarters are located in Hoboken, New Jersey, with operations in the U.S., Europe, Asia, Canada and Australia. The Company's website can be accessed at http://www.wiley.com. The Company is listed on the New York Stock Exchange under the symbols JWa and JWb.

Also read….The Little Book of Value Investing


 

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