Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor

NATIONAL BESTSELLER!

"Cogent, honest, and hard-hitting-a must read for every investor." -Warren E. Buffett

Praise for Common Sense on Mutual Funds

"Invoking both Thomas Paine and Benjamin Graham, Jack Bogle outlines a supremely logical plan not only to better investors' returns, but to improve the whole fund industry. This isn't just the best book yet by Bogle, it may well be the best book ever on mutual funds." -DON PHILLIPS, President & CEO, Morningstar, Inc.

"Buffett cannot teach you or me how to become a Warren Buffett. Bogle's reasoned precepts can enable a few million of us savers to become in twenty years the envy of our suburban neighbors-while at the same time we have slept well in these eventful times."-PAUL A. SAMUELSON, Massachusetts Institute of Technology Department of Economics

"After a lifetime of picking stocks, I have to admit that Bogle's arguments in favor of the index fund have me thinking of joining him rather than trying to beat him. Bogle's wisdom and his commonsense way of explaining things make this book indispensable reading for anyone trying to figure out how to invest in this crazy stock market."-JAMES J. CRAMER, Money Manager and Senior Columnist for TheStreet.com

"Written in his characteristic forthright and visionary style, Bogle penetrates the myths and jargon to shed a powerful light on the central issues that confront every investor, no matter what their level of experience or sophistication." -MARTIN L. LEIBOWITZ, Vice Chairman and Chief Investment Officer, TIAA-CREF

"Jack Bogle is one of the great pioneer/visionaries of the investment business. In this book, he shares his knowledge, experience, and judgment to enable us to become better investors. The final philosophical chapters provide insights that may help some of us become better people." -BYRON R. WIEN, Chief U.S. Investment Strategist Morgan Stanley Dean Witter

The chairman and founder of The Vanguard Group presents his vision of the mutual fund industry and explores the benefits of simplicity in investing, the level of consistent profits to be made from index funds, the importance of low costs to investment profits, and the place of bonds in the investment portfolio.

John C. Bogle has single-handedly transformed the mutual fund business, primarily by making putting the investor first. His Vanguard Group has won a multitude of loyal clients by consistently championing better funds at lower costs to the investor. Bogle's ideas and practices have been adopted by countless other fund groups. In Common Sense on Mutual Funds, Bogle elucidates his unique vision of the mutual fund industry and mutual fund investing.

Jack Bogle is one of the great pioneer/visionaries of the investment business. In this book, he shares his knowledge, experience, and judgment to enable us to become better investors. The final philosophical chapters provide insights that may help some of us become better people. -BYRON R. WIEN, Chief U.S. Investment Strategist Morgan Stanley Dean Witter

JOHN C. BOGLE is the founder and former Chief Executive of The Vanguard Group, Inc., the world's largest no-load mutual fund group, with more than 12 million shareholders and $500 billion in assets. He has studied mutual funds in depth since 1949, when he began the research for his senior thesis at Princeton University before joining the industry in 1951. In 1998, he received the Distinguished Service Award of the Association for Investment Management and Research. Early in 1999, his alma mater, Princeton University, presented him with its coveted Woodrow Wilson Award, exemplifying "Princeton in the Nation's Service." Later in 1999, he was identified as one of America's four financial "giants of the twentieth century" by Fortune magazine. Bogle is the author of the bestselling book, Bogle on Mutual Funds: New Perspectives for the Intelligent Investor, as well as numerous articles on investing.

ON INVESTMENT STRATEGY.

On Long-Term Investing: Chance and the Garden.

On the Nature of Returns: Occam's Razor.

On Asset Allocation: The Riddle of Performance Attribution.

On Simplicity: How to Come Down to Where You Ought to Be.

ON INVESTMENT CHOICES.

On Indexing: The Triumph of Experience over Hope.

On Equity Styles: Tick-Tack-Toe.

On Bonds: Treadmill to Oblivion?

On Global Investing: Acres of Diamonds.

On Selecting Superior Funds: The Search for the Holy Grail.

ON INVESTMENT PERFORMANCE.

On Reversion to the Mean: Sir Isaac Newton's Revenge on Wall Street.

On Investment Relativism: Happiness or Misery?

On Asset Size: Nothing Fails Like Success.

On Taxes: The Message of the Parallax.

On Time: The Fourth Dimension-Magic or Tyranny?

ON FUND MANAGEMENT.

On Principles: Important Principles Must Be Inflexible.

On Marketing: The Message Is the Medium.

On Technology: To What Avail?

On Directors: Serving Two Masters.

On Structure: The Strategic Imperative.

ON SPIRIT.

On Entrepreneurship: The Joy of Creating.

On Leadership: A Sense of Purpose.

On Human Beings: Clients and Crew.

Afterword.

Appendices.

Notes.

Index.