Common-Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Return. (ePub)

Common Sense Investing is the classic guide to getting smart about the market. Legendary mutual fund pioneer John 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.

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: "If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack 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.

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.