The Little Book of Common Sense Investing
The case for low-cost, broadly diversified index funds
Ranked 2 of 9 in best personal finance and investing books
A focused case for low-cost, broadly diversified index funds, written by the founder of Vanguard. It argues one position in depth, so it covers less of the wider field than A Random Walk Down Wall Street.
Best for Understanding the case for index funds
About The Little Book of Common Sense Investing
The book argues that a fund holding a broad market index at low cost tends to beat most actively managed funds once fees are counted. Bogle explains how costs compound over time and why he thinks few managers beat the market consistently. The writing is aimed at general readers.
The book suits readers who want the core case for index funds in one volume. It shares its central idea with A Random Walk Down Wall Street and The Bogleheads' Guide to Investing, but it argues the case rather than teaching how to build a portfolio. Its trade-off is that it was written in 2007, so its data and examples predate later market events.
Key features
- Low-cost index funds
- Costs and compounding
- Founder of Vanguard as author
Strengths
- Clear case for low-cost index funds
- Written for general readers
- Written by the founder of Vanguard
Limits
- Published in 2007, so its examples are dated
Where The Little Book of Common Sense Investing ranks
Alternatives to The Little Book of Common Sense Investing
All 8 alternatives- The Psychology of MoneyShort essays on how behavior and luck shape financial outcomes
- A Random Walk Down Wall StreetInvestment history and theory on why markets are hard to beat
- The Intelligent InvestorFoundational value-investing text on margin of safety and Mr. Market
- The Simple Path to WealthA plain-language path to financial independence with index funds
- The Bogleheads' Guide to InvestingAn index-investing guide based on the Bogleheads community philosophy
- Your Money or Your LifeA nine-step program that treats money as life energy
Compare The Little Book of Common Sense Investing
- The Little Book of Common Sense InvestingversusThe Psychology of Money
- The Little Book of Common Sense InvestingversusA Random Walk Down Wall Street
- The Little Book of Common Sense InvestingversusThe Intelligent Investor
- The Little Book of Common Sense InvestingversusThe Simple Path to Wealth
- The Little Book of Common Sense InvestingversusThe Bogleheads' Guide to Investing
Questions about The Little Book of Common Sense Investing
- Is The Little Book of Common Sense Investing free?
- The Little Book of Common Sense Investing is a paid product (paid). Sold as a print book; price varies by seller.
- Which formats is The Little Book of Common Sense Investing available in?
- The Little Book of Common Sense Investing is offered as Print.
- What is The Little Book of Common Sense Investing best for?
- Understanding the case for index funds. In our ranking of personal finance and investing books it is number 2 of 9 with a score of 91.0.
- What are the best alternatives to The Little Book of Common Sense Investing?
- The highest-ranked alternatives on listme.name are The Psychology of Money, A Random Walk Down Wall Street, The Intelligent Investor, The Simple Path to Wealth.
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