[GET] The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns

[ebizmoney]

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 guarantees
you with your fair share of stock market returns.

To learn how to make index investing work for you, there’s no better mentor than legendary
mutual fund industry veteran John C. Bogle.

Over the course of his long career, Bogle—founder of the Vanguard Group and creator of the
world’s first index mutual fund—has relied primarily on index investing to help Vanguard’s clients
build substantial wealth.

Now, with The Little Book of Common Sense Investing, he wants to help you do the same.

Filled with in-depth insights and practical advice, The Little Book of Common Sense Investing will
show you how to incorporate this proven investment strategy into your portfolio.

It will also change the very way you think about investing. Successful investing is not easy.
(It requires discipline and patience.) But it is simple.

For it’s all about common sense.With The Little Book of Common Sense Investing as your guide,
you’ll discover how to make investing a winner’s game:

• Why business reality—dividend yields and earnings growth—is more important than market expectations
• How to overcome the powerful impact of investment costs, taxes, and inflation
• How the magic of compounding returns is overwhelmed by the tyranny of compounding costs
• How to overcome the powerful impact of investment costs, taxes, and inflation
• How the magic of compounding returns is overwhelmed by the tyranny of compounding costs
  

Bogle has also added two new chapters designed to provide further guidance to investors:
one on asset allocation, the other on retirement investing.

A portfolio focused on index funds is the only investment that effectively guarantees
your fair share of stock market returns.

Bogle shows you how to make index investing work for you and help you achieve your
financial goals.

This new edition of The Little Book of Common Sense Investing offers you the
same solid strategy as its predecessor for building your financial future...

• Build a broadly diversified, low-cost portfolio without the risks of individual stocks,
  manager selection, or sector rotation.
• Forget the fads and marketing hype, and focus on what works in the real world.
• Understand that stock returns are generated by three sources (dividend yield,
  earnings growth, and change in market valuation) in order to establish rational
  expectations for stock returns over the coming decade.
• Recognize that in the long run, business reality trumps market expectations.
• Learn how to harness the magic of compounding returns while avoiding the tyranny
  of compounding costs.
  

While index investing allows you to sit back and let the market do the work for you,
too many investors trade frantically, turning a winner’s game into a loser’s game.

The Little Book of Common Sense Investing is a solid guidebook to your financial future.

Download here
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Stay well mates!

Kindest regards,
eBizmoney

[GordonShumway]

This is a simple idea... And because of that, not many people will follow it because it is boring.

The message is clear, invest in index funds. Don’t waste money on advisers to keep your management fees as low as possible.

Buy in and sit on it. Don't trade, Do nothing. Just sit on it for a long time.

OK, I know this works and is something I have been doing for a long time. But I add one thing to his equation.

Take 10% of your income each month before taxes and invest it into this program to speed things up a bit.

The "market" over a a longer period if time has returned about 9.5%. In investing they have something called the Rule of 72. What that means is if you take what your return is and dive 72 by that, that is how many years it will take you to double your investment.

Here is a simple example. Return is 10%. 72 divided by 10 = 7.2 years (to double your investment).

OK, so if the market is returning 9.5% over the long haul, then figure it will take you about 7.5 years to double your investment.

That is NOT sexy and people want things faster.... But if you keep feeding this beast AND the more time you have the better it works.

Lets say you are 30 and you can scrap together 20K to do this.

That means when you are 37.5 you will have 40K.
At 45 you will have 80k
At 52.5 you will have 160k
At 60 you will have 320K

Now, if during that time if you have been adding in 10% of your income, especially in the early years, this lights a fire under the growth of your investments.

Compounding interest is King when you have time to let it work for you.

Get started. Do this simple program. Find a good, low to ZERO cost index fund. Automate payments to the system from you bank so you always feed this beast.... And you will build a nice fortune.

Got kids? Teach them this. Get them started investing early, and they will retire early in life with a fortune.

Cheers,

G.S.

[ebizmoney]

(08-21-2022 10:41 PM)GordonShumway Wrote:  This is a simple idea... And because of that, not many people will follow it because it is boring.

The message is clear, invest in index funds. Don’t waste money on advisers to keep your management fees as low as possible.

Buy in and sit on it. Don't trade, Do nothing. Just sit on it for a long time.

OK, I know this works and is something I have been doing for a long time. But I add one thing to his equation.

Take 10% of your income each month before taxes and invest it into this program to speed things up a bit.

The "market" over a a longer period if time has returned about 9.5%. In investing they have something called the Rule of 72. What that means is if you take what your return is and dive 72 by that, that is how many years it will take you to double your investment.

Here is a simple example. Return is 10%. 72 divided by 10 = 7.2 years (to double your investment).

OK, so if the market is returning 9.5% over the long haul, then figure it will take you about 7.5 years to double your investment.

That is NOT sexy and people want things faster.... But if you keep feeding this beast AND the more time you have the better it works.

Lets say you are 30 and you can scrap together 20K to do this.

That means when you are 37.5 you will have 40K.
At 45 you will have 80k
At 52.5 you will have 160k
At 60 you will have 320K

Now, if during that time if you have been adding in 10% of your income, especially in the early years, this lights a fire under the growth of your investments.

Compounding interest is King when you have time to let it work for you.

Get started. Do this simple program. Find a good, low to ZERO cost index fund. Automate payments to the system from you bank so you always feed this beast.... And you will build a nice fortune.

Got kids? Teach them this. Get them started investing early, and they will retire early in life with a fortune.

Cheers,

G.S.

There is much iron in your advice. I hope readers will apply it to their strategies.

for your addition to the thread.

Stay well.

Kindest regards,
eBizmoney