The Little Book of Common Sense Investing

Investing is all about common sense. Owning a diversified portfolio of stocks and holding
it for the long term is a winner.s game. Trying to beat the stock market is theoretically
a zero-sum game (for every winner, there must be a loser), but after the substantial costs
of investing are deducted, it becomes a loser.s game. Common sense tells us.and history
confirms.that the simplest and most efficient investment strategy is to buy and hold all
of the nation.s publicly held businesses at very low cost. The classic index fund that
owns this market portfolio is the only investment that guarantees you with your fair share
of stock market returns.

To learn how to make index investing work for you, there.s no better mentor than legendary
mutual fund industry veteran John C. Bogle. Over the course of his long career, Bogle.founder
of the Vanguard Group and creator of the world.s first index mutual fund.has relied primarily
on index investing to help Vanguard.s clients build substantial wealth. Now, with The Little
Book of Common Sense Investing, he wants to help you do the same.

Filled with in-depth insights and practical advice, The Little Book of Common Sense Investing
will show you how to incorporate this proven investment strategy into your portfolio. It will
also change the very way you think about investing. Successful investing is not easy.
(It requires discipline and patience.) But it is simple. For it.s all about common sense.

With The Little Book of Common Sense Investing as your guide, you.ll discover how to make
investing a winner.s game:

* Why business reality.dividend yields and earnings growth.is more important than market
expectations
* How to overcome the powerful impact of investment costs, taxes, and inflation
* How the magic of compounding returns is overwhelmed by the tyranny of compounding costs
* What expert investors and brilliant academics.from Warren Buffett and Benjamin Graham
to Paul Samuelson and Burton Malkiel.have to say about index investing
* And much more

You.ll also find warnings about investment fads and fashions, including the recent stampede
into exchange traded funds and the rise of indexing gimmickry. The real formula for investment
success is to own the entire market, while significantly minimizing the costs of financial
intermediation. That.s what index investing is all about. And that.s what this book is all
about.

JOHN C. BOGLE is founder of the Vanguard Group, Inc., 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.

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