The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)
amazon.com
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)
For the defensive investor who required assistance, Graham originally recommended professional investment advisers who rely on “normal investment experience for their results . . . and who make no claim to being brilliant [but] pride themselves on being careful, conservative, and competent . . . whose chief value to their clients is in shielding
... 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)
Professional investment advisers are best at providing other valuable services, including asset allocation guidance, information on tax considerations, and advice on how much to save while you work and how much to spend when you retire. Further, most advisers are always there to consult with you about the financial markets.
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)
Owning the stock market over the long term is a winner’s game, but attempting to beat the stock market is a loser’s game.
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)
I know this book is trying to drum it out of me, but it is possible to believe the math and the logic here while also stating that there is a minority of people who can beat the market consistently and exhibit an edge. I have beat the market over long periods of time by holding a concentrated portfolio of great businesses and rarely selling. That shit works. It's just not something everyone can or should do. I take money from short-term idiots playing against each other (and more generally, all losing).
And finally, invest for the long term.
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)
Please don’t underestimate the power of compounding the generous returns earned by our businesses. Let’s assume that the stocks of our corporations earn a return of 7 percent per year. Compounded at that rate over a decade, each $1.00 initially invested grows to $2.00; over two decades, to $4.00; over three decades, to $7.50; over four decades, to
... 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)
Caution: The index fund’s annual risk-adjusted return of 9.1 percent over the past 25 years is all the more impressive since the returns of the active equity funds are overstated (as always) by the fact that only the funds that were good enough to survive the decade are included in the data. Adjusted for this “survivorship bias,” the return of the
... 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)
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!