Bokutdrag från boken: The Little Book of Common Sense Investing

John C. Bogle know in the Financial Independence circuits. For people who like to invest in the stock market but do it through index, in this case the Vanguard. For people who don't have the time or knowledge to invest themself and don't want to hire someone for it.

It's a book who hammers the foundamental message soo many times, from many diffrent angles. You can't miss it.
It has some nice wisdom that makes it at good read!

"Over time, the aggregate gains made by shareholders must of necessity match the business gains of the company."

The Little Book of Common Sense Investing – The Only Way to Guarantee Your Fair Share of Stock Market Returns
Av John C. Bogle (Founder and former CEO of the Vanguard Mutual Fund Group)

Here are som sample from the book:



//s[6] //

”The moral of the story, then, is that successful investing is about owning businesses and reaping the huge rewards provided by the dividends and earnings growth of our nation’s—and, for that matter, the world’s—corporations. The higher the level of their investment activity, the greater the cost of financial intermediation and taxes, the less the net return that the business owners as a group receive.” 

//s[23] //

“SO HOW DO YOU cast your lot with business? Simply by buying a portfolio that owns the shares of every business in the United States and then holding it forever. It is a simple concept that guarantees you will win the investment game played by most other investors who—as a group—are guaranteed to lose.
Please don’t equate simplicity with stupidity. Way back in 1320, William of Occam expressed it well, essentially setting forth this precept: When there are multiple solutions to //s[24] a problem, choose the simplest one.* And so Occam’s Razor came to represent a major principle of scientific inquiry. By far the simplest way to own all of U.S. business is to hold the total stock market portfolio.”

//Inramat //

//Occam’s Razor: When there are multiple solutions to a problem, choose the simplest one.//

//”Don’t Take My Word for It”, s[33] //

“Hear David Swensen, widely respected chief investment officer of the Yale University Endowment Fund. “A minuscule 4 percent of funds produce market-beating after-tax results with a scant 0.6 percent (annual) margin of gain. The 96 percent of funds that fail to meet the Vanguard 500 Index Fund lose by a wealth-destroying margin of 4.8 percent per annum.”

//”Don’t Take My Word for It”, s[59] //

“The wise Warren Buffett shares my view, in what I call his “four E’s.” “The greatest Enemies of the Equity investor are Expenses and Emotions.” Even Andrew Lo, MIT professor and author of A Non-Random Walk down Wall Street (suggesting strategies to out-perform the market), personally “invest by buying and holding index funds.” Perhaps even more surprisingly, the founder and chief executive of the largest mutual supermarket—while vigorously promoting actively managed funds, Charles Schwab answered: “It’s fun to play around. . . it’s human nature to try to select the right horse. . . (But) for the average person, I’m more of an indexer. . . The predictability is so high. . . For 10, 15, 20 years you’ll be in the 85th percentile of performance. Why would you screw it up?”
Mark Hulbert, highly regarded editor of the Hulbert Financial Digest concurs. “Assuming that the future is like the past, you can outperform 80 percent of your fellow investors over the next several decades by investing in an index fund—and doing nothing else. [But] acquire the discipline to do something even better: become a long-term index fund investor.” His New York Times article was headlined: “Buy and Hold? Sure, but Don’t Forget the Hold.””