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G**S
Great little read
"The Little Book of Common Sense Investing" by John C. Bogle is a timeless gem that every investor, whether a novice or an expert, should have on their bookshelf. In a world filled with complex financial jargon and high-frequency trading, this book serves as a lighthouse of wisdom, guiding readers towards a simple yet highly effective approach to investing.One of the standout features of this book is its unwavering commitment to the principles of long-term, passive investing. Bogle masterfully dismantles the allure of day trading and short-term speculation, replacing it with a compelling case for the benefits of long-term index investing. He advocates for a straightforward strategy of investing in low-cost, broad-market index funds that track the overall market's performance. This approach not only significantly reduces fees and taxes but also provides the best odds of achieving consistent, market-beating returns over time.What sets this book apart is its remarkable clarity. Bogle's writing is refreshingly concise, and he cuts through the noise to deliver his insights with a directness that is both enlightening and empowering. He explains complex financial concepts in a way that anyone can understand, making the book accessible to both beginners and seasoned investors.The book's practical advice is not only grounded in sound financial theory but also backed by extensive historical data. Bogle provides ample evidence to support his arguments, illustrating how the simple act of investing in low-cost index funds has consistently outperformed the vast majority of actively managed funds.Another highlight of the book is its emphasis on the importance of discipline and patience. Bogle reinforces the idea that successful investing is a marathon, not a sprint. He encourages investors to stay the course, resist the temptation to react to short-term market fluctuations, and instead focus on the long-term goals of wealth accumulation and financial security.In summary, "The Little Book of Common Sense Investing" is a classic that remains as relevant today as when it was first published. John C. Bogle's timeless wisdom and his straightforward approach to investing are invaluable assets for anyone looking to secure their financial future. This book is a must-read for those who want to break free from the complexities of day trading and embrace the common-sense path to long-term financial success.
D**G
If you read only one book on investing in equity and bond funds, read this one!
I wish I had come across this book in 1996, when I first started investing in funds. At the time, I was living in the US, where most pensions are defined contribution and require you to take charge of where your contributions are invested. Over the years, I have made the following errors: (1) investing in individual companies; (2) investing in "fads" (specifically, tech funds in 2000!); (3) not learning enough about bonds; (4) having a portfolio that was unbalanced in terms of equities and bonds, geographic regions, and sectors; and (5) not paying attention to fund costs.Over the years, I have learned these lessons slowly but surely (and sometimes painfully!) I can honestly say that if I'd had this book back in 1996, I wouldn't have made nearly as many mistakes.In the 1970s, John Bogle was the visionary that understood that the best strategy for almost every investor who is in it for the long haul is to invest broadly in index (tracker) funds with low charges. That's it! Sounds simple, and if you don't want to spend 14 quid on the book, just do this. But in comparison to the long-term costs of investing, 14 quid is nothing, and the book will help you understand WHY this is such a good long-term strategy. Using numerous data-based examples, Bogle illustrates why this works, and the pitfalls of not following it. All the data show that "expert" stock-pickers do no better than chance, compared to index funds, and because of factors such as reversion to the mean, and of course higher costs, they do worse.I read this book in just 2 days. Besides maybe Dave Ramsay's book "Financial Peace", it is by far the easiest book on investment that I have ever read. Considering the move within the UK towards defined-contribution occupational pension schemes, it should be required reading.
