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The Little Book of Common Sense Investing

The Only Way to Guarantee Your Fair Share of Stock Market Returns, 10th Anniversary Edition

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The Little Book of Common Sense Investing

Written by: John C. Bogle
Narrated by: L. J. Ganser
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About this listen

The best-selling investing "bible" offers new information, new insights, and new perspectives

The Little Book of Common Sense Investing is the classic guide to getting smart about the market. Legendary mutual fund pioneer John C. Bogle reveals his key to getting more out of investing: low-cost index funds. Bogle describes the simplest and most effective investment strategy for building wealth over the long term: buy and hold, at very low cost, a mutual fund that tracks a broad stock market Index such as the S&P 500.

While the stock market has tumbled and then soared since the first edition of The Little Book of Common Sense Investing was published in April 2007, Bogle's investment principles have endured and served investors well. This tenth anniversary edition includes updated data and new information but maintains the same long-term perspective as in its predecessor. Bogle has also added two new chapters designed to provide further guidance to investors: one on asset allocation, the other on retirement investing.

A portfolio focused on index funds is the only investment that effectively guarantees your fair share of stock market returns. This strategy is favored by Warren Buffett, who said this about Bogle: "For decades, Jack has urged investors to invest in ultra-low-cost index funds.... Today, however, he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me."

Bogle shows you how to make index investing work for you and help you achieve your financial goals and finds support from some of the world's best financial minds: not only Warren Buffett but Benjamin Graham, Paul Samuelson, Burton Malkiel, Yale's David Swensen, Cliff Asness of AQR, and many others.

This new edition of The Little Book of Common Sense Investing offers you the same solid strategy as its predecessor for building your financial future.

  • Build a broadly diversified, low-cost portfolio without the risks of individual stocks, manager selection, or sector rotation.
  • Forget the fads and marketing hype, and focus on what works in the real world.
  • Understand that stock returns are generated by three sources (dividend yield, earnings growth, and change in market valuation) in order to establish rational expectations for stock returns over the coming decade.
  • Recognize that in the long run, business reality trumps market expectations.
  • Learn how to harness the magic of compounding returns while avoiding the tyranny of compounding costs.

While index investing allows you to sit back and let the market do the work for you, too many investors trade frantically, turning a winner's game into a loser's game. The Little Book of Common Sense Investing is a solid guidebook to your financial future.

©2017 John C. Bogle (P)2017 Audible, Inc.
Investing & Trading Personal Finance Stock Market

What listeners say about The Little Book of Common Sense Investing

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Great read

I'm a beginner not knowing where to invest, this was a good start. But the basics here are to invest in index funds.

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    5 out of 5 stars
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Gret book

I love the way he explained the index fund. It changed my perfection about it.
Thank you

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Simple and effective

Best part is the simplicity and sticking to the basics which will get u better returns than 90% of fund managers

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got good advice

mostly books about investing in ETF's
lot of great example given to keep investing simple.however more details on how to rebalance portfolio was Missing

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Sensible book for value investors

It's a great book for value investors to learn about stock market index funds. However for non us readers there are few boring or unnecessary chapters.
key takeaways for me are:-
1) importance of stock market index funds over actively managed mutual funds
2) lower investment cost for high return
3) best practices for portfolio management, best mix of stocks and bonds.
4) some useful tips onlong-term investing.

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Once again it's only Long term way to be wealthy

Classic inputs and timeless advices to incorporate in our long term investments journey - mainly you focus on your investment to create your wealth, not depending on others, understand humble arithmetic, take index funds and bonds in your portfolio. Happy listening.

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Fanstastic book on investment

Great book for people who want to create wealth and know little about stock market

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Great book and wonderful narration

I listened to this book on audible. I enjoyed it a lot, both in terms of the narration quality as well as the content of the book. Furthermore, the quality of writing is also wonderful. I think that I am now going to read everything by Bogle.

Maybe I am a bit biased in my rating since this is one of the first books on investment which I have finished. But the advices offered by Bogle are solid, and are buttressed by sufficient examples and detailed cases.

I especially liked the format of the chapters. Bogle introduces a concept at the beginning of the chapter, and goes on to give a detailed explanation about the introduction. Finally, he gives examples of what others have said too.

I would, however, be a bit cautious with the way he quotes people. We must understand that just because the people he quotes said what he quotes, they have not said the other things too. Therefore, while I enjoyed that part, I would discard it completely.

Another important thing to notice is that Bogle's approach is long-term. If you are looking at a 20-30 year horizon, it makes sense that you are looking at displacement and not distance (in terms of physics). If you are interested in earning by intra day trading or trading in general, this book is not for you.

I am going to write a detailed review on the chapter by chapter content by re-listening to this book again.

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    4 out of 5 stars

Not Completely Agree with Bogle

Index Funds are the way to go for developed markets. Fund managers do make some differrence in Mid/Small/Sector funds in developing markets. Hence not completely agree with the concepts in this book

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Best book on investment

Loved it. It gives us the secret to create wealth. I have started implementing its advice from today itself.

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