Common Sense on Mutual Funds

Foreword for the 10th Anniversary Edition.

Foreword for the Original Edition.

Preface to the 10th Anniversary Edition.

Preface to the Original Edition.

Acknowledgments for the 10th Anniversary Edition.

Acknowledgments for the Original Edition.

About the Author.

PART I: On Investment Strategy.

Chapter 1 On Long-Term Investing.

Chance and the Garden.

Chapter 2 On the Nature of Returns.

Occam's Razor.

Chapter 3 On Asset Allocation.

The Riddle of Performance Attribution.

Chapter 4 On Simplicity.

How to Come Down to Where You Ought to Be.

PART II: On Investment Choices.

Chapter 5 On Indexing.

The Triumph of Experience over Hope.

Chapter 6 On Equity Styles.

Tick-Tack-Toe.

Chapter 7 On Bonds.

Treadmill to Oblivion?

Chapter 8 On Global Investing.

Acres of Diamonds.

Chapter 9 On Selecting Superior Funds.

The Search for the Holy Grail.

PART III: On Investment Performance.

Chapter 10 On Reversion to the Mean.

Sir Isaac Newton's Revenge on Wall Street.

Chapter 11 On Investment Relativism.

Happiness or Misery?

Chapter 12 On Asset Size.

Nothing Fails Like Success.

Chapter 13 On Taxes.

The Message of the Parallax.

Chapter 14 On Time.

The Fourth Dimension--Magic or Tyranny?

PART IV: On Fund Management.

Chapter 15 On Principles.

Important Principles Must Be Inflexible.

Chapter 16 On Marketing.

The Message Is the Medium.

Chapter 17 On Technology.

To What Avail?

Chapter 18 On Directors.

Serving Two Masters.

Chapter 19 On Structure.

The Strategic Imperative.

PART V: On Spirit.

Chapter 20 On Entrepreneurship.

The Joy of Creating.

Chapter 21 On Leadership.

A Sense of Purpose.

Chapter 22 On Human Beings.

Clients and Crew.

Afterword.

Appendix I Some Thoughts about the Current Stock Market as 2010 Begins.

Appendix II Some Thoughts about the Current Stock Market as 1999 Begins.

Notes.

Index.

John C. Bogle is founder of the Vanguard Mutual Fund Group and President of its Bogle Financial Markets Research Center. He created Vanguard in 1974 and served as chairman and chief executive officer until 1996 and senior chairman until 2000. In 1999, Fortune magazine named Mr. Bogle as one of the four "Investment Giants" of the twentieth century; in 2004, Time named him one of the world's 100 most powerful and influential people; and Institutional Investor presented him with its Lifetime Achievement Award. Bogle is also the author of Enough. and The Little Book of Common Sense Investing, both published by Wiley.

"As founder of the giant mutual fund company, Vanguard Group, Bogle writes what he knows: how to steer one's way through mutual funds and the numbing variety of investment alternatives available today. His is a clear and readable style, and Bogle helps make still somewhat-arcane terms such as quantitative investing understandable."(SmartMoney.com)"Common Sense on Mutual Funds," by John Bogle, inventor of the retail index fund and founder of the Vanguard Group. It's the best book ever on fund investing, just updated for new investors. The case for indexing is rock solid, as you'll see here. It's the only strategy that works, long term."
--Jane's Book Club, before [have] I seen a book that so openly and successfully juxtaposed that which was said against that which actually happened over the period of a decade. . . As a long-time believer in low cost indexing, I didn't think I'd learn much from this book. I was wrong! Reading this book offers investors a glimpse of the perspective and lessons learned from recent years that were anything but normal. . . This book, of course, is even more valuable to those that aren't a believer in indexing. It may be a hard read if you're among those who still believe that 90 percent of investors can all be above average. Consider the effort well worth it because the common sense in this book may save your retirement. Reading this book might also help you realize, as I have, that common sense really is pretty uncommon."
--Allan Roth, CBS Moneywatch.com

"The definitive book on index fund investing. It explains why index fund investing is the best way -- no, the only way -- for people to invest their savings. . . [Bogle] does something few in the investing world would dare to do. He stands by what he said 10 years ago. The original text is presented unchanged. New data is added to reveal what happened over the past 10 years."
--Scott Burns, The Austin American Statesman

A worthwhile addition to one's library, particularly as a reference publication. . . This . . revision of a book written ten years ago . . . with the original text still present in the book, and an analysis of the predictions that were made ten years ago. . . makes fascinating reading. The analysis of the predictions on their own makes the book worth a read, even if all one does is look at the coloured sections which contain the updated material."
(Australian Investors Association)

"More Common Sense from Jack Bogle. Jack's back and he's unbowed. . . The tome holds up well after a decade. Bogle hasn't altered a word of the original text, just added color coded data and text boxes to show where he was on or off the mark. Guess what? Jack doesn't offer many mea culpas. . . The book is still essential reading for investors. Whether you think indexing is the best way to investor not, it's filled with simple, powerful advice that can help stack the odds of long-term financial success in your favor. Reading it then helped shape me as an investor and analyst. Here are the most important lessons (besides the obvious one: that indexing works) that I've drawn from the pages of both editions, as well as a couple of points where I, and many of my colleagues, dare to differ from St. Jack." (Morningstar)