Little Book of Common Sense Investing

Infobox Book
name = The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns
author = John C. Bogle


genre = Investing
language = English
publisher = John Wiley & Sons
release_date = 2007
pages = 240
isbn = ISBN 978-0-470-10210-7

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns is a book on index investing. It was released in March 2007.

Overview

This is the sixth book by John C. Bogle, the founder and former CEO of the Vanguard Group. In "the Little Book of Common Sense Investing", he writes 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." Bogle maintains that the "classic index fund" that owns this market portfolio is the only investment that guarantees a fair share of stock market returns. The book elaborates on the same practice of index investing that Bogle built the Vanguard Group around to turn a profit for clients.

His book explains:

#Why he thinks that business reality—dividend yields and earnings growth—is more important than market expectations
#How to overcome the impact of investment costs, taxes, and inflation
#How compounding returns are overwhelmed by the compounding costs
#What several investors and academics—from Warren Buffett and Benjamin Graham to Paul Samuelson and Burton Malkiel—have to say about index investing.

The book is reviewed by Burton Malkiel in "The Wall Street Journal Europe" (April 11, 2007 p.12).

This is the third book in Wiley's "LITTLE BOOK. BIG PROFITS." series. 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. Browne (Wiley, 2006), ISBN 978-0-470-05589-2

The series focus is to present finance strategies in general and understandable terms.

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