John Bogle's distillation of his case for index fund investing — the most accessible statement of his argument that costs are the primary determinant of investment returns.
The arithmetic of investing: in aggregate, investors must earn the market return minus costs — therefore the surest way to outperform is to minimize costs. Index funds: by owning the entire market at minimal cost, investors are guaranteed to outperform the majority of active managers. Bogle's Rule: in investing, you get what you don't pay for. A condensed version of arguments developed at greater length in his earlier works.
Discussing
Ask anything about The Little Book of Common Sense Investing — their ideas, influences, contradictions, legacy.
Sign in to start a conversation.