Book Review: “The Little Book of Common Sense Investing” by John C. Bogle

Quick Navigation

Book Review: "The Little Book of Common Sense Investing" by 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)” (buy the book) by John C. Bogle is a classic investment guide that has stood the test of time, offering readers a simple yet powerful approach to building wealth. Bogle, the founder of The Vanguard Group and the creator of the first index fund, presents a compelling case for low-cost, passive investing as the key to long-term financial success. In this review, we’ll explore the main takeaways from Bogle’s book and discuss its continued relevance and impact on investors.

  1. The Case for Index Investing:

At the core of Bogle’s investment philosophy is the belief that low-cost index funds outperform actively managed funds in the long run. He presents a wealth of data and research to support this claim, demonstrating that the vast majority of actively managed funds fail to consistently beat their benchmark indexes. By investing in a low-cost index fund, Bogle argues that investors can capture the market’s returns while minimizing fees and expenses.

  1. Costs Matter:

One of the central themes of “The Little Book of Common Sense Investing” is the importance of minimizing investment costs. Bogle explains that high fees and expenses can significantly erode an investor’s returns over time, making it all the more challenging to achieve long-term financial goals. By choosing low-cost index funds, investors can keep more of their returns and let the power of compounding work in their favor.

  1. The Folly of Market Timing:

Bogle cautions against the temptation to time the market, as even the most seasoned professionals struggle to predict its short-term movements accurately. Instead, he advocates for a buy-and-hold strategy, emphasizing the importance of staying invested through market ups and downs to maximize long-term returns. This approach encourages discipline, patience, and a long-term perspective, which are crucial to investment success.

  1. Diversification:

“The Little Book of Common Sense Investing” also highlights the importance of diversification in building a robust investment portfolio. Bogle recommends investing in broadly diversified index funds that provide exposure to a wide range of asset classes, sectors, and geographical regions. This strategy can help investors minimize risk while still capturing the market’s overall returns.

  1. The Power of Compounding:

Bogle emphasizes the power of compounding, explaining that even small differences in returns can have a significant impact on an investor’s wealth over time. By minimizing costs and staying invested in a diversified portfolio of low-cost index funds, investors can harness the power of compounding to grow their wealth and achieve their financial goals.

  1. Simplicity:

A key tenet of Bogle’s investment philosophy is the importance of simplicity. He encourages investors to avoid the noise and complexity of the financial industry and focus on a straightforward, low-cost investment strategy. By keeping things simple, investors can reduce the potential for mistakes and make it easier to stay disciplined and focused on their long-term objectives.

  1. Rebalancing:

Bogle discusses the importance of periodically rebalancing one’s portfolio to maintain the desired level of risk and diversification. By doing so, investors can ensure that their portfolio remains aligned with their long-term goals and risk tolerance, even as market conditions change.


“The Little Book of Common Sense Investing” by John C. Bogle remains a timeless and invaluable resource for investors seeking a proven, straightforward approach to building wealth. Bogle’s emphasis on low-cost index funds, diversification, and a long-term perspective provides a powerful framework for achieving financial success. By following the principles outlined in this book, investors can simplify their investment strategy, minimize costs, and maximize their potential for long-term growth. Whether you’re a beginner or an experienced investor, Bogle’s wisdom and insights continue to resonate and offer valuable guidance in today’s complex financial landscape.,This article is an original creation by If you wish to repost or share, please include an attribution to the source and provide a link to the original article.Post Link:

Like (0)
Previous March 23, 2023 9:18 pm
Next March 23, 2023 9:59 pm

Related Posts

  • Harnessing Your Mind’s Potential: A Review of Joseph Murphy’s “The Power of Your Subconscious Mind”

    Joseph Murphy’s book, “The Power of Your Subconscious Mind,” (Buy from Amazon) is a classic in the field of personal development and self-help. Published in 1963, it has sold millions of copies worldwide and continues to be a popular and influential book. The central thesis of the book is that the human mind has an incredible power to influence our lives, and that we can tap into this power through our subconscious mind. In the first few chapters of the book, Murphy introduces the concept of the subconscious mind and…

    February 24, 2023
  • Review: Neil Hack’s ‘Credit Secrets: 3 in 1’ – A Comprehensive Guide to Managing Your Credit and Finances

    Neil Hack’s “Credit Secrets: 3 in 1: Boost Your FICO Score By 200 Points in Less Than 30 Days, Without Hiring Credit Repair Agencies. 609 Letter Templates Included + Bonus: 10 Secrets The Experts Don’t Share” (get the book from amazon) is a comprehensive guide for anyone looking to improve their credit score and overall financial health. The book is divided into three sections, each of which covers a different aspect of managing credit. In the first section, “Credit Secrets,” Hack provides readers with little-known strategies and loopholes in the…

    March 7, 2023
  • Building Wealth and Achieving Financial Freedom: A Review of Robert T. Kiyosaki’s ‘Rich Dad’s Increase Your Financial IQ’

    “Rich Dad’s Increase Your Financial IQ: Get Smarter with Your Money” (buy from amazon) by Robert T. Kiyosaki is a comprehensive guide to developing financial literacy and increasing one’s financial intelligence. The book provides readers with practical strategies for building wealth and achieving financial freedom, and offers insights into the mindset and habits of successful investors and entrepreneurs. One of the key themes of the book is the importance of financial education. Kiyosaki argues that traditional education does not adequately prepare individuals for financial success, and that financial education is…

    February 25, 2023
  • A Comprehensive Review of Robert T. Kiyosaki’s ‘Rich Dad Poor Dad for Teens’: A Must-Read for Aspiring Young Entrepreneurs

    “Rich Dad Poor Dad for Teens” is a book written by Robert T. Kiyosaki that aims to teach teenagers about the importance of financial literacy and the power of entrepreneurship. The book is based on Kiyosaki’s own experiences growing up and the lessons he learned from his “rich dad” and “poor dad.” One of the main themes of the book is the importance of understanding the difference between assets and liabilities. Kiyosaki argues that most people, including teens, are taught to focus on liabilities, such as buying a car or…

    January 25, 2023
  • Key Lessons and Insights from Thomas J. Stanley and William D. Danko’s “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy”

    “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy” (Get the book from Amazon) by Thomas J. Stanley and William D. Danko is a comprehensive book that explores the habits and characteristics of America’s wealthy population. The book is based on extensive research and interviews with self-made millionaires and provides insights into how they built their wealth and achieved financial independence. Some of the key themes and takeaways from the book include: The importance of frugality and saving: The authors find that many self-made millionaires live below their means,…

    January 29, 2023
  • Creating Wealth Through Rental Properties: A Review of Brandon Turner’s “The Book on Rental Property Investing”

    “The Book on Rental Property Investing: How to Create Wealth with Intelligent Buy and Hold Real Estate Investing” (Get from Amazon) by Brandon Turner is a comprehensive guide for anyone looking to create wealth through rental property investing. Written in a clear, easy-to-understand style, this book is an essential resource for both new and experienced investors. One of the book’s main strengths is its emphasis on creating a solid investment strategy. Turner stresses the importance of conducting thorough market research and selecting properties that will generate cash flow. He provides…

    January 27, 2023
  • Building Good Habits and Breaking Bad Ones: A Review of James Clear’s “Atomic Habits”

    James Clear’s “Atomic Habits: An Easy & Proven Way to Build Good Habits and Break Bad Ones” (Buy from Amazon) is a comprehensive guide to habit formation and change. The book is well-researched, easy to understand, and filled with practical advice and real-life examples. Clear defines a habit as a “repeated behavior that is triggered by a specific cue and produces a specific reward.” He explains that small changes in behavior can lead to big results over time and that the key to forming good habits and breaking bad ones…

    January 26, 2023
  • Mastering Financial Literacy: A Review of Robert Kiyosaki’s “Rich Dad Poor Dad”

    “Rich Dad Poor Dad” is a personal finance book written by Robert Kiyosaki that has become a classic in the field of financial education. The book is based on Kiyosaki’s own experiences growing up with two “dads” – his biological father, whom he refers to as his “poor dad,” and his best friend’s father, whom he refers to as his “rich dad.” Through the book, Kiyosaki shares the financial lessons he learned from each of these men, and how they shaped his own financial beliefs and behaviors. One of the…

    January 25, 2023
  • Love, Loss, and Redemption: A Review of Colleen Hoover’s “Reminders of Him”

    Introduction Colleen Hoover’s “Reminders of Him” (buy from amazon) is a moving and poignant novel that explores the complexities of love, loss, and redemption. The book follows the story of Kenna Rowan, a young woman struggling to come to terms with her past, and Ledger Ward, a man grappling with his own demons, as they navigate their complicated relationship. In this article, we will delve into the key aspects of “Reminders of Him” and discuss why this novel is a must-read for fans of contemporary romance and emotionally driven narratives….

    March 17, 2023
  • The Ultimate Scholarship Book 2023: A Comprehensive Review of Gen Tanabe and Kelly Tanabe’s Guide to College Financial Aid

    Gen Tanabe and Kelly Tanabe’s book “The Ultimate Scholarship Book 2023: Billions of Dollars in Scholarships, Grants and Prizes” (buy from amazon) is an invaluable resource for students and parents seeking information about funding their college education. The book provides a comprehensive guide to finding and applying for scholarships, grants, and other forms of financial aid. The book is organized into sections based on different types of scholarships, such as merit-based, need-based, and career-specific. Each section provides detailed information on the requirements for each scholarship, including eligibility criteria, application deadlines,…

    March 7, 2023

Leave a Reply

Your email address will not be published. Required fields are marked *