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)
This pattern of tax inefficiency for active managers seems destined to continue as long as (1) stocks rise and (2) fund managers continue their pattern of hyperactive trading. Let’s be clear: In an earlier era, most fund managers focused on long-term investment. Now they are too often focused on short-term speculation. The traditional index fund fo
... See moreJohn 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)
What is more, investor cash flows into ETFs are exceptionally volatile, especially when compared to the relatively stable cash flows experienced by TIFs. During the 24 months from the stock market high in April 2007 to April 2009 (shortly after the low of the 50 percent market crash), TIFs experienced not a single month of negative flows. Flows int
... See moreJohn 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)
Warren Buffett puts the moral of his story this way: For investors as a whole, returns decrease as motion increases.
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)
Successful short-term marketing strategies are rarely—if ever—optimal long-term investment strategies.
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)
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.
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)
Costs make the difference between investment success and investment failure. So, sharpen your pencils. Do your own arithmetic. Realize that you are not consigned to playing the hyperactive management game that is played by the overwhelming majority of individual investors and mutual fund owners alike. The low-cost index fund is there to guarantee t
... See moreJohn 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)
In short, the ETF is a trader to the cause of the TIF. I urge intelligent investors to stay the course with the proven index strategy. While I can’t assure you that traditional index investing is the best strategy ever devised, I can assure you that the number of strategies that are worse is infinite.
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)
You can be more successful in selecting winning funds by focusing, not on the inevitable evanescence of past performance, but on something that seems to go on forever or, more fairly, a factor that has persisted in shaping fund returns throughout the fund industry’s long history. That factor is the cost of owning mutual funds. Costs go on forever.
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)
The beauty of the index fund, then, lies not only in its low expenses, but in its elimination of all those tempting fund choices that promise so much and deliver so little.