The Little Book of Common Sense Investing by John C Bogle

Описание: The Little Book of Common Sense Investing by John C. Bogle is a guide to long-term wealth building through low-cost index fund investing. Bogle, the founder of Vanguard, argues that the simplest and most effective strategy is to buy and hold a broad market index fund to capture market returns while minimizing costs and avoiding the pitfalls of speculation and active trading. The book emphasizes discipline, patience, and a focus on what works in the real world over market fads.
Key takeaways from the book
Embrace index funds: Bogle's central thesis is that the best way to invest is to own the entire market through a low-cost index fund, which guarantees you will capture your "fair share" of stock market returns.
Avoid speculation: The book distinguishes between the "expectations market" (speculation) and the "real market" (investing), arguing that the stock market is often a distraction from the business of investing.
Minimize costs: Bogle stresses that costs, including management fees and taxes, are a major drag on returns. Index funds have significantly lower costs than actively managed funds.
Focus on the long term: The book advocates for a "buy and hold" strategy, emphasizing that long-term investing is far more effective than trying to time the market or chase "hot stocks".
Understand market realities: Bogle explains how stock returns are generated and why, in the long run, business reality trumps market expectations.
Be wary of fads: The book warns against investment fads and gimmicks, including the hype around exchange-traded funds (ETFs) and other products that promise to beat the market.
Discipline and patience are key: Bogle acknowledges that while the strategy is simple, it requires discipline and patience to stick with it, especially during market downturns.