Investment Book Recommendation

The Little Book of Common Sense Investing by John C. Bogle.

The Little Book of Common Sense Investing
by John C. Bogle.

This is probably the only book on investing you’ll ever need to read. At the 2017 AGM of Warren Buffet’s company, Berkshire HathawayJack (John) Bogle was introduced as the “person who has done the most for the American investor.” He has contributed immensely to making investing accessible to the general public.

We attended the Berkshire Hathaway 2017 AGM and picked up a copy of this book on our return. The book’s message is simple yet powerful. Whether you are a novice or professional investor, you’ll learn something. This is probably the best book ever written for investors to help understand how the investment markets and financial services industry operates. So if we had to pick one book on investing this is it.

“The two greatest enemies of the equity fund investor are
expenses and emotions.”

John C. Bogle, The Little Book of Common Sense Investing

Bogle provides a detailed overview of two different investment options: actively managed funds and index funds. The book provides evidence of why it’s better to invest your money in a low-cost index fund instead of giving it to a high-cost investment fund, run by a fund manager.

He also outlines why;

  1. The way to wealth is to capitalize on the magic of long-term compounding of investment returns.

  2. Most funds will underperform a simple index fund.

  3. The stock market increases and how to value it.

  4. Simplicity will always beat complexity.

  5. The stock market is a giant distraction to the business of investing.

  6. How to calculate future investment returns from the stock market.

Common sense investing is not as easy as it sounds. Let us know if you would like a copy of this Little Book of Common Sense. If you would like us to help you implement some common sense investment strategies do get in touch. We’d be delighted to help.

Written by Pat Leahy, Certified Financial Planner

Published 2019-10-30

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