The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)
John C. Bogleamazon.com
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)
Its greatest gains were achieved shortly after Magellan began with assets of just $7 million. In those early days, the fund outpaced the S&P 500 by an astonishing 10 percent per year (Magellan 18.9 percent, S&P 500 8.9 percent). After the fund’s assets passed the $1 billion mark in 1983, the fund’s superiority over the market continued, alb
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If the managers take nothing, the investors receive everything: the market’s return.
John C. Bogle • The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)
Excluding dividend income, an initial investment of $10,000 in the S&P 500 on January 1, 1926, would have grown to more than $1.7 million as 2017 began. But with dividends reinvested, that investment would have grown to some $59.1 million!
John C. Bogle • The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)
Traditional index funds (TIFs) had the lowest costs of all: expenses averaging just 0.1 percent during this period. With no measurable turnover costs, its total all-in costs were but 0.1 percent. The gross return of the S&P 500 Index fund was 9.2 percent per year; the net return, 9.1 percent. Carrying a lower risk than any of the four cost quar
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S&P 500 Total Stock Market Index Rank Weighting Rank Weighting Apple Inc. 3.2% Apple Inc. 2.5% Microsoft Corp. 2.5 Microsoft Corp. 2.0 Alphabet Inc. 2.4 Alphabet Inc. 2.0 Exxon Mobil Corp. 1.9 Exxon Mobil Corp. 1.6 Johnson & Johnson 1.6 Johnson & Johnson 1.3 Berkshire Hathaway Inc. 1.6 Berkshire Hathaway Inc. 1.3 JPMorgan Chase & Co
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Occam’s razor: When there are multiple solutions to a problem, choose the simplest one.
John C. Bogle • The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)
John Maynard Keynes. Here’s what he wrote 81 years ago: It is dangerous . . . to apply to the future inductive arguments based on past experience, unless one can distinguish the broad reasons why past experience was what it was. But if we can distinguish the reasons the past was what it was, then we can establish reasonable expectations about the f
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The price/earnings (P/E) ratio measures the number of dollars investors are willing to pay for each dollar of earnings. As investor confidence waxes and wanes, P/E multiples rise and fall.1 When greed holds sway, very high P/Es are likely. When hope prevails, P/Es are moderate. When fear is in the saddle, P/Es are typically very low. Back and forth
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That difference of 0.5 percentage points per year arose from what I call speculative return. Speculative return may be a plus or a minus, depending on the willingness of investors to pay either higher or lower prices for each dollar of earnings at the end of a given period than at the beginning.