Synopses & Reviews
John Bogle—founder of the Vanguard Mutual Fund Group and creator of the first index mutual fund—is an industry pioneer. Over the years, he has single-handedly transformed the mutual fund business, and today, his vision continues to inspire investors.
It has been over a decade since the original edition of Common Sense on Mutual Funds was first published. While much has changed during this time, the importance of investing and the issues addressed in the original edition of this book have not. Now, in the Fully Updated 10th Anniversary Edition of Common Sense on Mutual Funds, Bogle returns to update his in-depth look at mutual funds and the business of investing—helping you navigate through the staggering array of investment options found in today's evolving investment landscape.
Timely and timeless, this important book examines the fundamentals of mutual fund investing in turbulent market environments and offers valuable guidance for building an investment portfolio. Along the way, Bogle shows you that simplicity and common sense still trump costly complexity, and that a low cost, broadly diversified portfolio continues to be the best way to build wealth at the lowest cost and risk—and will almost always outperform more expensive, actively managed mutual funds.
Throughout these pages, Bogle skillfully presents a platform for intelligent investing as he analyzes costs, exposes tax inefficiencies, and warns of the mutual fund industry's conflicting interests. Emphasizing long-term investing and asset allocation, Bogle offers sensible solutions to the fund selection process and reveals what it will take to make it in today's chaotic market. Updated charts, which also show original data, as well as new commentary and analysis provide timely guidance in light of recent changes in investment vehicles and market performance.
Securing your financial future has never seemed more difficult, but after reading this revised and updated edition of Common Sense on Mutual Funds, you will become a better investor. From stock and bond funds to global investing and index funds, this book will help you regain your financial footing and make more informed investment decisions.
"As founder of the giant mutual fund company, Vanguard Group, Bogle writes what he knows: how to steer one’s way through mutual funds and the numbing variety of investment alternatives available today. His is a clear and readable style, and Bogle helps make still somewhat-arcane terms such as quantitative investing understandable."(SmartMoney.com)
"Common Sense on Mutual Funds," by John Bogle, inventor of the retail index fund and founder of the Vanguard Group. It’s the best book ever on fund investing, just updated for new investors. The case for indexing is rock solid, as you’ll see here. It’s the only strategy that works, long term."
—Jane’s Book Club, http://janebryantquinn.com
"Never before [have] I seen a book that so openly and successfully juxtaposed that which was said against that which actually happened over the period of a decade. . . As a long-time believer in low cost indexing, I didn’t think I’d learn much from this book. I was wrong! Reading this book offers investors a glimpse of the perspective and lessons learned from recent years that were anything but normal. . . This book, of course, is even more valuable to those that aren’t a believer in indexing. It may be a hard read if you’re among those who still believe that 90 percent of investors can all be above average. Consider the effort well worth it because the common sense in this book may save your retirement. Reading this book might also help you realize, as I have, that common sense really is pretty uncommon."
—Allan Roth, CBS Moneywatch.com
"The definitive book on index fund investing. It explains why index fund investing is the best way — no, the only way — for people to invest their savings. . . [Bogle] does something few in the investing world would dare to do. He stands by what he said 10 years ago. The original text is presented unchanged. New data is added to reveal what happened over the past 10 years."
—Scott Burns, The Austin American Statesman
A worthwhile addition to one’s library, particularly as a reference publication. . . This . . revision of a book written ten years ago . . . with the original text still present in the book, and an analysis of the predictions that were made ten years ago. . . makes fascinating reading. The analysis of the predictions on their own makes the book worth a read, even if all one does is look at the coloured sections which contain the updated material.”
(Australian Investors Association)
“More Common Sense from Jack Bogle. Jack’s back and he’s unbowed. . . The tome holds up well after a decade. Bogle hasn’t altered a word of the original text, just added color coded data and text boxes to show where he was on or off the mark. Guess what? Jack doesn’t offer many mea culpas. . . The book is still essential reading for investors. Whether you think indexing is the best way to investor not, it’s filled with simple, powerful advice that can help stack the odds of long-term financial success in your favor. Reading it then helped shape me as an investor and analyst. Here are the most important lessons (besides the obvious one: that indexing works) that I’ve drawn from the pages of both editions, as well as a couple of points where I, and many of my colleagues, dare to differ from St. Jack.” (Morningstar)
John C. Bogle shares his extensive insights on investing in mutual funds
Since the first edition of Common Sense on Mutual Funds was published in 1999, much has changed, and no one is more aware of this than mutual fund pioneer John Bogle. Now, in this completely updated Second Edition, Bogle returns to take another critical look at the mutual fund industry and help investors navigate their way through the staggering array of investment alternatives that are available to them.
Written in a straightforward and accessible style, this reliable resource examines the fundamentals of mutual fund investing in today's turbulent market environment and offers timeless advice in building an investment portfolio. Along the way, Bogle shows you how simplicity and common sense invariably trump costly complexity, and how a low cost, broadly diversified portfolio is virtually assured of outperforming the vast majority of Wall Street professionals over the long-term.
- Written by respected mutual fund industry legend John C. Bogle
- Discusses the timeless fundamentals of investing that apply in any type of market
- Reflects on the structural and regulatory changes in the mutual fund industry
- Other titles by Bogle: The Little Book of Common Sense Investing and Enough.
Securing your financial future has never seemed more difficult, but you'll be a better investor for having read the Second Edition of Common Sense on Mutual Funds.
In this completely updated second edition, Bogle returns to take another critical look at the mutual fund industry and help investors navigate their way through the staggering array of investment alternatives that are available.
Praise for The Original 1998 Edition
"Cogent, honest, and hard-hitting—a must read-for every investor."
Warren E. Buffett
Praise for Common Sense On Mutual Funds fully updated 10th anniversary edition
"The only thing better than Bogle's original book is its improved revision. Bon appetit!"
—Paul A. Samuelson, Nobel Laureate, Economics
"Were I allowed to recommend only one investment volume to friends and family, the updated edition of Common Sense on Mutual Funds would be it—it is even better than the first edition was ten years ago."
—William J. Bernstein, author of The Investor's Manifesto, A Splendid Exchange, The Birth of Plenty, and The Four Pillars of Investing
"How do you improve upon perfection? Well, with this tenth anniversary edition of Common Sense on Mutual Funds, the best mutual fund primer just got better."
—Don Phillips, Managing Director, Morningstar
"In this timely update of Common Sense on Mutual Funds, John Bogle improves on what was the finest book on mutual funds ever written."
—Jane Bryant Quinn, financial columnist and author of Smart and Simple Financial Strategies for Busy People
"Jack Bogle cares passionately about everyday Americans—and that passion is palpable in these pages. This new edition of Common Sense on Mutual Funds will send you marching into the financial markets with a sense of mission."
—Jonathan Clements, author of The Little Book of Main Street Money
"When the history of modern investment management is written, John Bogle will stand out as one of its towering figures."
—Byron R. Wien, Vice Chairman, Blackstone Advisory Services
"A powerful no-nonsense prescription for how individual investors should structure their portfolios in the current market environment."
—Martin Leibowitz, Managing Director, Morgan Stanley
About the Author
John C. Bogle is founder of the Vanguard Mutual Fund Group and President of its Bogle Financial Markets Research Center. He created Vanguard in 1974 and served as chairman and chief executive officer until 1996 and senior chairman until 2000. In 1999, Fortune magazine named Mr. Bogle as one of the four "Investment Giants" of the twentieth century; in 2004, Time named him one of the world's 100 most powerful and influential people; and Institutional Investor presented him with its Lifetime Achievement Award. Bogle is also the author of Enough. and The Little Book of Common Sense Investing, both published by Wiley.
Table of Contents
Foreword for the 10th Anniversary Edition.
Foreword for the Original Edition.
Preface to the 10th Anniversary Edition.
Preface to the Original Edition.
Acknowledgments for the 10th Anniversary Edition.
Acknowledgments for the Original Edition.
About the Author.
PART I: On Investment Strategy.
Chapter 1 On Long-Term Investing.
Chance and the Garden.
Chapter 2 On the Nature of Returns.
Chapter 3 On Asset Allocation.
The Riddle of Performance Attribution.
Chapter 4 On Simplicity.
How to Come Down to Where You Ought to Be.
PART II: On Investment Choices.
Chapter 5 On Indexing.
The Triumph of Experience over Hope.
Chapter 6 On Equity Styles.
Chapter 7 On Bonds.
Treadmill to Oblivion?
Chapter 8 On Global Investing.
Acres of Diamonds.
Chapter 9 On Selecting Superior Funds.
The Search for the Holy Grail.
PART III: On Investment Performance.
Chapter 10 On Reversion to the Mean.
Sir Isaac Newton's Revenge on Wall Street.
Chapter 11 On Investment Relativism.
Happiness or Misery?
Chapter 12 On Asset Size.
Nothing Fails Like Success.
Chapter 13 On Taxes.
The Message of the Parallax.
Chapter 14 On Time.
The Fourth Dimension—Magic or Tyranny?
PART IV: On Fund Management.
Chapter 15 On Principles.
Important Principles Must Be Inflexible.
Chapter 16 On Marketing.
The Message Is the Medium.
Chapter 17 On Technology.
To What Avail?
Chapter 18 On Directors.
Serving Two Masters.
Chapter 19 On Structure.
The Strategic Imperative.
PART V: On Spirit.
Chapter 20 On Entrepreneurship.
The Joy of Creating.
Chapter 21 On Leadership.
A Sense of Purpose.
Chapter 22 On Human Beings.
Clients and Crew.
Appendix I Some Thoughts about the Current Stock Market as 2010 Begins.
Appendix II Some Thoughts about the Current Stock Market as 1999 Begins.