The Little Book of Common Sense Investing
by John C. Bogle · first published 2007
87% recommend13% neutral
Why HN recommends it
Short, plain case from the inventor of the index fund for buying and holding low-cost index funds. It shows how fees compound and why most active funds trail benchmarks; suits beginners building a passive plan.
Summarised by Claude from recommending comments
Investing is all about common sense. Owning a diversified portfolio of stocks and holding it for the long term is a winner's game. Trying to beat the stock market is theoretically a zero-sum game (for every winner, there must be a loser), but after the substantial costs of investing are deducted, it becomes a loser's game. Common sense tells us--and history confirms--that the simplest and most efficient investment strategy is to buy and hold all of the nation's publicly held businesses at very low cost. The classic index fund that owns this market portfolio is the only investment that guarante
Affiliate links. As an Amazon Associate I earn from qualifying purchases.
Mentions per year
What Hacker News says
Related books
2008–2023Common Stocks and Uncommon Profits
Philip A. Fisher
Recommended by 12 · mentioned by 1312 recommend · 13 mention12 recommend · 1312 recommend
2008–2021All About Asset Allocation
Richard A. Ferri
Recommended by 4 · mentioned by 44 recommend · 4 mention4 recommend · 44 recommend
2007–2026A Random Walk Down Wall Street
Burton Gordon Malkiel
Recommended by 127 · mentioned by 190127 recommend · 190 mention127 recommend · 190127 recommend
2008–2024The Bogleheads' guide to investing
Taylor Larimore
Recommended by 27 · mentioned by 3027 recommend · 30 mention27 recommend · 3027 recommend
2010–2020How to Make Money in Stocks
William J. O'Neil
Recommended by 4 · mentioned by 44 recommend · 4 mention4 recommend · 44 recommend
2007–2025The four pillars of investing
William J. Bernstein
Recommended by 26 · mentioned by 2726 recommend · 27 mention26 recommend · 2726 recommend
2008–2022Stock Market Wizards
Jack D. Schwager
Recommended by 5 · mentioned by 65 recommend · 6 mention5 recommend · 65 recommend
2010–2025The permanent portfolio
Craig Rowland, J. M. Lawson
Recommended by 4 · mentioned by 154 recommend · 15 mention4 recommend · 154 recommend
Index funds will almost always outperform actively managed funds. They are the best choice for the layman investor. An excellent book on this topic is The Little Book of Common Sense Investing by John Bogle. https://www.amazon.com/Little-Book-Common-Sense-Investing/dp...
on “Buffett wins $1M decade-old bet that the S&P500 would outperform hedgefunds” ↗…be a passive or active investor. Passive investing means putting your money into index funds. John Bogle of the Vanguard Group has a series of books out on the topic, there is a slim one called The Little Book of Common Sense Investing. -I'd recommend reading some of his work. Active investing is more difficult. To be honest, most people simply lack the time and effort necessary to invest intelligently in the market. They wont know…
on “Ask HN: Steady 4-5% on $5 million?” ↗…Swedroe # The Bogleheads' Guide to Investing - by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf # All About Asset Allocation - by Rick Ferri # The Informed Investor - by Frank Armstrong # The Little Book of Common Sense Investing - by John "Jack" Bogle # The Coffeehouse Investor - by Bill Schultheis. Investor Behavior # Why Smart People Make Big Money Mistakes And How To Correct Them - by Gary Belsky and Thomas Gilovich #…
on “Ask HN: Best books/source to learn about investing?” ↗I can't give just one, but here are a few that had a strong influence on me: "12 Rules for Life" by Jordan Peterson, "Why Switzerland?" Jonathan Steinberg, "Little Book of Common Sense Investing" by John C. Bogle, "A Random Walk Down Wall Street" by Butron Malkiel, "Liberalismus" by Ludwig von Mises, "Meditations" by Marcus Aurelius, "A Treatise of Human Nature" by David Hume, "Thinking, Fast…
on “Ask HN: What's one book that changed your life?” ↗I highly recommend "The Little Book of Common Sense Investing" by Jack Bogle. It's a super short book full of great advice from the inventor of the Index Fund: https://www.amazon.com/Little-Book-Common-Sense-Investing/dp...
on “Ask HN: Best resources to learn about stock trading and investing?” ↗I recommend 2 books: 1) A random walk down wall street 2) The little book of common sense investing
on “Ask HN: Best investment books?” ↗…enough). Tune out all the noise and stick to your plan. Even with these dips, most people expect stocks to perform better than any other asset class in the long term (20+ years). I'd also recommend The Little Book of Common Sense Investing: http://www.amazon.com/dp/0470102101 It's written by John Bogle, who founded Vanguard to bring diversified, low-cost investing to the masses. Vanguard is different from other companies in that it's…
on “Money and wealth” ↗…are just the ones that have stuck with me. Investing: 1) The Intelligent Investor - Benjamin Graham 2) Security Analysis - Benjamin Graham 3) Common Stocks and Uncommon Profits - Philip Fisher 4) The Little Book of Common Sense Investing - John Bogle 5) The Most Important Thing - Howard Marks Economics: 1) An Inquiry into the Nature and Causes of the Wealth of Nations - Adam Smith 2) Where Are the Customers' Yachts: or A Good Hard Look…
on “Buffett FAQ” ↗…basic investment literacy, it would not hurt to read "The Bogleheads' Guide to Investing" (https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Lar...). I've also heard good things about John Bogle's "Little Book of Common Sense Investing" but haven't read it.
on “A good resource for financial advice to share with people in their twenties?” ↗…investments alone, without worrying about what’s happening to the market in the short term. As far as advice goes, /u/actuators comment elsewhere in this thread is great. I also enjoyed reading Bogle’s Little Book of Common Sense Investing
on “Ask HN: What are your instruments for investment?” ↗Rise to Globalism by Stephen Ambrose and Doug Brinkley is an adequate precis of US ascent to global power, which IMHO contains the seeds of its demise. The Battle for the Soul of Capitalism, The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John Bogle is the economic/fiscal/investing perspective I align with at the "non-billionaire" level. China analyses is fluid at this…
on “Ask HN: Are We in a Bubble?” ↗…the top 500 companies in the market and so your gains will pretty much match the gains of the market itself. It's a simple way to just put money into the market and get safe returns. You can read "The Little Book of Common Sense Investing" by John Bogle for more details on this. I actually have about an 80/20 split between two funds. The 80 would be towards the S&P 500 and the 20 would be towards the equivalent but for international…
on “Ask HN: What would you do if you could start over?” ↗1. The Pragmatic Programmer. 2. Writing Tools: 50 Essential Strategies for Every Writer. 3. Diffusion of Innovations. 4. The Little Book of Common Sense Investing. 5. Implementing Lean Software Development: From Concept to Cash. 6. Writing to Learn. 7. On Writing Well. 8. Pragmatic Thinking and Learning: Refactor Your Wetware. 9. Thinking In Systems: A Primer.…
on “Ask HN: What are some no fluff books on engineering, career, and general wisdom?” ↗…needed by govt to improve life of the people so that they can pay more taxes in aggregate and improve conditions thus improving productivity as well) I recommend the book Intelligent Investing and The little book of common sense investing by the legendary John Bogle (May he rest in peace)
on “Is passive investment inflating a stockmarket bubble?” ↗I am very lucky to be retiring in two months. I should have more faithfully heeded the advice from "The Little Book of Common Sense Investing" by John Bogle, but I was close enough with index funds to do far more than I need. I just today filed a request for permanent Mexican residency, uploaded the required documents, and scheduled my appointment…
on “No-One Escapes the Permanent Underclass” ↗