There are various companies vying to manage investors’ money while platforms like Robinhood that encourage expedient day trading entice investors with the possibility of quick profits and beating the market.Īmidst this chaos, The Little Book of Common Sense Investing by Jack Bogle argues that the winning strategy for novice investors is simple: Invest in traditional index funds and hold them indefinitely.Īs the founder of the Vanguard Group, one of the world’s largest investment firms, Bogle himself created the world’s first index fund in 1975, which tracked the S&P 500-a stock market index containing stocks of the 500 largest companies in the US. The Little Book of Common Sense Investing Because the costs of mutual funds vastly outstrip those of index funds, Bogle argues that mutual funds deliver reduced returns, and those relative losses compound over time.īelow is a brief overview of The Little Book of Common Sense Investing by John Bogle. In The Little Book of Common Sense Investing, Jack Bogle outlines the reasons why investors typically make more money with index funds than actively managed mutual funds. What is Jack Bogle’s The Little Book of Common Sense Investing about? What’s the key message to take away from the book? Like this article? Sign up for a free trial here.

Shortform has the world's best summaries and analyses of books you should be reading. This article is an excerpt from the Shortform book guide to 'The Little Book of Common Sense Investing' by John C.

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