2 min read
30 Mar

Part 1: Purchase Link:

If you prefer to read in paper format, feel free to purchase the paperback on Amazon UK through the below link:

The little book of Common sense investing

If you don't have time to read the book but want to quickly grasp the essentials, feel free to purchase the mind map summary of the book from our digital store to grasp the essentials.


Part 2: One sentence Summary

"The Little Book of Common Sense Investing" is that passive investing, through low-cost index funds, is a rational and effective strategy for long-term investment success.

Part 3:  Key ideas

"The Little Book of Common Sense Investing" by John C. Bogle is mainly about promoting a passive investing strategy and highlighting the flaws of active investment management. Here are the core opinions expressed by the author:

  1. Passive investing is a more sensible and reliable approach to long-term investing.
  2. Active investment management, where investors try to beat the market through frequent trading and stock picking, often underperforms passive strategies.
  3. High costs associated with active management, including fees and taxes, significantly erode investment returns.
  4. Investors should focus on broad market index funds or exchange-traded funds (ETFs) that provide diversification and low expenses.
  5. Market timing and frequent trading are unlikely to consistently generate superior investment results.
  6. Emphasizes the importance of long-term investing and resisting the urge to chase short-term market trends.
  7. Advocates for simplicity and consistency in investment decisions rather than trying to outsmart the market.
  8. Investors should prioritize minimizing costs and maximizing returns through a disciplined and patient approach.

Overall, the book encourages individual investors to adopt a passive investment strategy using low-cost index funds and emphasizes the importance of long-term, disciplined investing.

Part 4: Who should be reading

"The Little Book of Common Sense Investing" is recommended for individual investors of all experience levels who are interested in understanding the benefits of passive investing and how to implement it. The book is accessible to readers with a basic understanding of financial concepts, making it suitable for both novice and experienced investors looking to optimize their investment approach. 

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