John C. Bogle: The Little Book of Common Sense Investing and Enough

Trader's Library #73 · Investing and the stock market. The best argument against trading, which every trader should know.

Author: John C. Bogle · Original: The Little Book of Common Sense Investing; Enough · Year: 2007 · Usefulness for traders: ★★☆☆☆

What it's about

The founder of Vanguard and of the first index fund for individual investors argues that for most people the best strategy is a cheap index fund. “Enough” is a reflection on what true wealth is.

What it gives a trader

For a trader it's an important benchmark: active trading only makes sense if, after costs, it does better than passively holding the index. Bogle relentlessly counts the costs that eat into returns.

Lessons for traders

• transaction costs and fees eat into returns more than you think
• compare your results with a simple passive alternative
• most active managers don't beat the index (the better-than-average effect, Atlas of biases #12)

What to watch out for

A book against active investing: that's exactly why it's worth reading.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

← #072 Buffett and Value Investing: Hagstrom, Connors, Browne · Library index · #074 Other Investment Strategies: Katsenelson, Lichtenfeld, Kroeze, Cramer →

Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.