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. I'll even go one better and agree with the fundamental premise of this book, that almost everyone should have broad-based indexing as the foundation of their investment plans. In this latest entry in the Little Book series, Bogle′s gentle prose contains idiot–proof advice for investors at all levels. There does appear to be a certain element of this, as no mention is given of any potential disadvantages to index funds (other sources confirm that they do exist to some degree). My mentor, Ben Graham, took this position manyyears ago, and everything I have seen since convinces me of its truth.

Instead, if we choose to own the entire market by collectively investing in all the listed companies, we would be able to make a similar profit in line with the upward movement of the chosen Index. He is known for his 1999 book Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor, which became a bestseller and is considered a classic.To support his statement (while claiming that he invented the index funds) he uses arguments such as tax, agent fees, half quotes from famous people, stupid examples on why this worked (you may be able to find many more on why this did not work! The tenet of Index investing is that even if we cannot beat the market, we still do not lose our invested money (risk-free). To learn how to make index investing work for you, there's no better mentor than legendary mutual fund industry veteran John C. the Author only teaches one lesson in the entire book and spends the rest of it explaining why he is correct.

The fact is that the preponderance of investors (and, apparently, fund managers) still believe in an Alice-in-Wonderland world of investment which is all about special insights, market timing, leveraging and unfeasibly complex investment products or strategies. The book is also aimed at an American investor and some of the tenets praised by the author are not that relevant for someone living in a different part of the world. He created Vanguard in 1974 and served as Chairman and Chief Executive Officer until 1996 and Senior Chairman until 2000. Where does The Little Book of Common Sense Investing rank among all the audiobooks you’ve listened to so far?This book is essentially a dismantling of vast swaths of the financial industry, especially the mutual fund. so likelihood of finding a true winner manager AND it she still leading it 30 years later is exceedingly slim.