Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor Wiley Audio: Amazon.co.uk: John C. Bogle: Books

Amazon.co.uk Review

Invoking the words and spirit of Thomas Paine, investor-turned-historian John Bogle concedes that ideas for revamping the mutual-fund industry are perhaps "not yet sufficiently fashionable to them general favor." But despite likening the "ills and injustices suffered by mutual fund investors" to those "our forebears suffered under English tyranny," Bogle--founder of the Vanguard Group-- makes a strong case for index funds with this exhaustive study of investing.

He begins with primer-like essays on investment strategy, championing mutual funds for their inherent investment value, and then grinding each point home with a bevy of graphs, charts, entertaining anecdotes, and common sense. He repeatedly stresses time as a basic tenet for investing, listing these simple rules: "Time is your friend"; "Impulse is your enemy"; "Stay the course." And then he proceeds to blast fund managers, who have become marketers rather than managers.

The trade-off between the profits that accrue to fund shareholders and the profits that accrue to the fund management companies seems subject to no effective independent watchdog or balance wheel, despite the fact that the shareholders actually own the mutual funds.

It's an interesting concept: smart, reasoned investors can all but secure their financial future, but the system itself, run unchecked by fund managers, needs a major overhaul. And considering the amount of reasoned, historically based support he includes, readers will have a hard time finding fault with the sometimes controversial Bogle. In equal parts instructional and crusade, Common Sense on Mutual Funds deserves the attention it's likely to receive. Recommended. --Rob McDonald, Amazon.com

Review

"Cogent, honest and hard–hitting – a must read for every investor." –Warren E. Buffett

"Common Sense on Mutual Funds marks the culmination of one of Wall Street′s most inspired careers. Invoking both Thomas Paine and Benjamin Graham, Jack Bogle proceeds to outline a supremely logical plan not only to better investors′ returns, but to improve the whole fund industry. This isn′t just the best book yet by Bogle, it may well be the best book ever on mutual funds." –Don Phillips, President & CEO, Morningstar, Inc.

"Buffett cannot teach you or me how to become a Warren Buffett. Bogle′s reasoned precepts can enable a few million of us savers to become in twenty years the envy of our suburban neighbors – while at the same time we have slept well in these eventful times." –Paul A. Samuelson, Massachusetts Institute of Technology, Department of Economics

"After a lifetime of picking stocks, I have to admit that Bogle′s arguments in favor of the index fund has me thinking of joining him rather than trying to beat him. Bogle′s wisdom and his commonsense way of explaining things makes this book indispensable reading for anyone trying to figure out how to invest in this crazy stock market."–James J. Cramer, Money manager and senior columnist for TheStreet.com

"Written in his characteristic forthright and visionary style, Jack Bogle′s new book penetrates the myths and jargon to shed a powerful light on the central issues that confront every investor, no matter what their level of experience or sophistication." –Martin L. Leibowitz, Vice President and Chief Investment Officer, TIAA–CREF

"Jack Bogle is one of the great pioneer/visionaries of the investment business. In this book he shares his knowledge, experience, and judgement to enable us to become better investors. The final philosophical chapters provide insights that may help some of us become better people." –Byron R. Wien, Chief U.S. Investment Strategist, Morgan Stanley Dean Witter

"Superior in intellect, character, and performance, the investment genius who defied conventional wisdom and proved his critics wrong gives readers a wealth of practical advice." –Hon. William E. Simon, Former Secretary of the Treasury

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4 of 4 people found the following review helpful

Avoid the Misconception Stall about Your Investments 29 May 2004

By Donald Mitchell HALL OF FAME TOP 500 REVIEWER VINE™ VOICE

Format:Hardcover

A common problem that all of us have is that we believe ourselves to be able to produce superior results in virtually any area we try -- acting on that belief can cost you a fortune if it affects how you invest over your lifetime. By definition, half will be average or less, and half average or higher in most areas of human endeavor. When it comes to investing, however, the odds are not that good.

If you choose the wrong asset class, you can make great choices and greatly lag the pack. If you choose the wrong way to invest with the right asset class, you can still do poorly.

Mr. Bogle's book explains in remarkable detail (with lots of graphs and numbers to make the point) that almost everyone will lag the market averages for stocks over any multiple year period of time due to the effects of trading stocks, taxes, costs for money management, marketing expenses, and size of portfolio.

Rather than despair, he points out that we can view this as an outstanding opportunity. We can simply buy indexed mutual funds (such as the ones that Vanguard, his former firm, offers) and outperform 98-99 percent of everyone who invests for the long haul.

Unlike other books where the author touts an activity that benefits him economically, Mr. Bogle's arguement is right. For anyone with less investment skill than Warren Buffett, S&P 500 and Wilshire 5000 index funds will be a terrific solution.

New investors may find this book to have more information than they need or can easily absorb.

People who think they know all the answers will find a lot of new material to cogitate about, usefully.

Anyone who owns mutual funds is making a mistake if they do not read this book.

Anytime you start to invest on the assumption that you can beat the market easily, PLEASE QUICKLY READ OR REREAD THIS BOOK. THEN LIE DOWN UNTIL THE FEELING GOES AWAY!

He is also remarkably candid that future returns from indexing may be modest (even though you will continue to beat almost everyone else). My own reaction is that the market is really too high now to start index investing in many countries, but new cash should certainly go into index mutual funds in other countries whenever we get a decent correction down to or much closer to the more typical 14 times p/e that stocks usually sell for. Mr. Bogle also explores that point in excellent detail.

A wonderful book by someone who is really looking out for the investors' best interests!

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3 of 3 people found the following review helpful

Fantastic! A must read for every investor 10 Jan 2003

By Tehzeeb S. Gunja

Format:Audio Cassette

I have read several outstanding investment books and this is surely one among them. I have always been suspicious of all the Wall Street and City slicks making a killing out of novice investors. Mr. Bogle exposes the farce all too clearly.

This book is not only an outstanding book on mutual funds (unit trusts) but also on investment principles for a long term investor.

Even though the book in written in the US context, it is fully relevant in the UK market which parallels the US market as well as financial services offered there. It should be no problem to apply the principles and philosophies here.

A WORD OF CAUTION: The English language used in the book is very sophiticated and even more so are the discussions around the graphs, figures and numbers involved. It can be quite a challenge to the novice investor. I would recommed reading a basic book on investment principles and strategies and then graduating to this book. But once you follow it, it will be your mutual fund/unit trust Bible.

Best of luck and don't let the financial industry fleece you!

Strips away the mystique 6 Jun 2011

By Moonbase View

Format:Paperback

If you have ever been confused as to how markets work - this book will set you straight. It systematically explains, in an easy to understand way, why markets behave the way they do and how best to harness them for your benefit. The book will pay for itself many times over if you follow its advice (and save you a lot of money too). John Bogle is a small investor's champion and I cannot recommend this book too highly. If you are a UK resident you may have to temper his US centric views - but his wisdom travels well. The book I read was published in the mid 90's and so does not have the benefit of the extraordinary events that were to follow (.com boom and the credit crunch). Reading it with this knowledge to hand actually made this book even more impressive - he was firm in his convictions that markets will return to the norm. So the trick is to efficiently ride the market not try and outsmart it. My advice is take the advice.