The Little Book of Common Sense Investing

Implementation Notes

• Invest in index funds: John Bogle recommends investing in index funds as they provide diversification and minimal costs.
• Keep costs to a minimum: Minimize fees and other expenses, as they can significantly reduce your long-term earnings.
• Diversify your investments: Spread your investments across different assets and sectors to reduce risks.
• Invest for the long term: Bogle emphasizes the importance of a long-term approach to investing, avoiding attempts to predict short-term market fluctuations.
• Avoid active management: Active management often leads to high costs and does not guarantee better results compared to passive investing.
• Focus on real returns: Pay attention to real returns after accounting for inflation and taxes, rather than nominal figures.
• Maintain discipline and patience: Stick to your investment strategy and avoid emotional decisions based on short-term market fluctuations.
• Understand what you are investing in: Study and understand the basic principles and mechanisms of the instruments you are investing in.