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melaniem03's review against another edition
3.0
For a book on investing with a lot of numbers, charts, and other exhibits this was pretty easy to read overall. However I can mostly sum it up with this idea: invest in low cost index funds, actively managed high cost mutual funds are bad, don't try to beat the stock market, carry a diversified and long term portfolio with something between a 25/75 to 75/25 split of stocks and bonds. Nonetheless glad to think more about investment strategy.
fester's review against another edition
informative
slow-paced
3.25
Great advice for anyone interested in investing.
However, as a book, it is repetitive. I ended up skimming most chapters once I got further into the book. Nearly every chapter is a repeat of “mutual funds have high management costs and therefor are a bad investment compared to index funds.”.
However, as a book, it is repetitive. I ended up skimming most chapters once I got further into the book. Nearly every chapter is a repeat of “mutual funds have high management costs and therefor are a bad investment compared to index funds.”.
ajafrost's review against another edition
4.0
3.5 stars.
Halfway through this book (and on vacation, no less!) I dropped what I was doing to navigate through Vanguard's extremely unfriendly interface and buy a low-fee index fund that tracks the market. That is to say: Bogle effectively makes his case.
But as others have pointed out, he makes his case too many times. This book reads extremely defensively, like someone told Bogle you won't believe him unless he proves his point in a thousand slightly different ways, with a thousand slightly different examples. It was too much for me; I started rolling my eyes whenever I could see him leading up to his "misguided investment X" versus the "all-mighty, will-never-fail-you low-cost index fund."
Here's what I'm taking away from The Little Book of Common Sense Investing (which could be littler...):
- Investing is a zero-sum game. If one investor wins, another loses. It's better to own the whole pie than duke it out for slices.
- Reversion to the mean (RTM) means picking a mutual fund based on past experience is foolhardy.
- Reduce as many "unnecessary" investment-related costs as necessary, e.g. sales load, commission fees, buying and selling costs, etc. These costs have a huge impact on your lifetime ROI, thanks to...
- The magic of compounding interest. Okay, I didn't need Bogle to teach me about this, but his premise rests on the investor's ability (both financially and mentally) to buy and hold. In the long run, this leads to $$$$$$.
If you want to be convinced yourself, read this book. If you need a reason to stay away from cryptocurrency, buying and selling individual stocks, trying to predict the next recession, etc., read this book. If you're happy with the summary above and can find your way to a low-cost index fund, skip it.
Halfway through this book (and on vacation, no less!) I dropped what I was doing to navigate through Vanguard's extremely unfriendly interface and buy a low-fee index fund that tracks the market. That is to say: Bogle effectively makes his case.
But as others have pointed out, he makes his case too many times. This book reads extremely defensively, like someone told Bogle you won't believe him unless he proves his point in a thousand slightly different ways, with a thousand slightly different examples. It was too much for me; I started rolling my eyes whenever I could see him leading up to his "misguided investment X" versus the "all-mighty, will-never-fail-you low-cost index fund."
Here's what I'm taking away from The Little Book of Common Sense Investing (which could be littler...):
- Investing is a zero-sum game. If one investor wins, another loses. It's better to own the whole pie than duke it out for slices.
- Reversion to the mean (RTM) means picking a mutual fund based on past experience is foolhardy.
- Reduce as many "unnecessary" investment-related costs as necessary, e.g. sales load, commission fees, buying and selling costs, etc. These costs have a huge impact on your lifetime ROI, thanks to...
- The magic of compounding interest. Okay, I didn't need Bogle to teach me about this, but his premise rests on the investor's ability (both financially and mentally) to buy and hold. In the long run, this leads to $$$$$$.
If you want to be convinced yourself, read this book. If you need a reason to stay away from cryptocurrency, buying and selling individual stocks, trying to predict the next recession, etc., read this book. If you're happy with the summary above and can find your way to a low-cost index fund, skip it.
hmorrison1934's review against another edition
informative
fast-paced
4.5
One of the best investment books I’ve read. Gets a little bogged down towards the end, but overall it has GREAT and easy information. If you weren’t already sold on index funds before this (you should be,) you will after this. I’m thankful that Bogle has felt compelled to share his wealth of knowledge.
shikogo's review against another edition
informative
medium-paced
4.5
Excellent introduction to long term investing.
alexanderp's review against another edition
challenging
informative
fast-paced
2.75
More of a skim than a true read, I just wanted to get some basic principles of investing as recommended by a friend.
Bogle really just offers three common sense bits of advice that make sense to me, a financially-illiterate person:
Don't use brokers, managers, or financial advisers.
Don't turn over investments/equities frequently.
Invest in Index funds, because no one outperforms the market.
Otherwise, this book needed to be maybe 150 pages, not 250+.
Bogle really just offers three common sense bits of advice that make sense to me, a financially-illiterate person:
Don't use brokers, managers, or financial advisers.
Don't turn over investments/equities frequently.
Invest in Index funds, because no one outperforms the market.
Otherwise, this book needed to be maybe 150 pages, not 250+.
andredias's review against another edition
informative
inspiring
medium-paced
4.25
"The Little Book of Common Sense Investing" by John C. Bogle is a beacon of wisdom in the realm of personal finance. Bogle, the founder of Vanguard Group and a pioneer of index investing, delivers a compelling argument for a straightforward and low-cost approach to building wealth through the stock market. The book advocates for passive investing, emphasizing the simplicity and effectiveness of investing in low-cost index funds that track the overall market.
Bogle's message revolves around the concept of capturing the market's returns rather than attempting to beat it through active management. He presents a compelling case against the high fees and unpredictability associated with actively managed funds, asserting that a patient, long-term investment strategy based on broad market exposure is the surest path to financial success.
The book is accessible, jargon-free, and serves as a guide for both novice and seasoned investors. Bogle's unwavering commitment to the principles of common sense and prudence provides a timeless blueprint for anyone seeking a reliable and sustainable approach to investing in the stock market. "The Little Book of Common Sense Investing" is an indispensable resource that empowers readers to take control of their financial future with clarity, simplicity, and a steadfast commitment to common sense.