ISBN: 9780470102107
NLB Call No.: 332.6327 BOG biz

By John C. Bogle – founder of the Vanguard Group, Inc. and creator of the world’s first index mutual fund (he has a blog).

p. xviii (Introduction):

“This book will tell you why you should stop contributing to the croupiers of the financial markets, who rake in something like $400 billion each year from you and your fellow investors. It will also tell you how easy it is to do just that: simply buy the entire stock market. Then, once you have bought your stocks, get out of the casino and stay out. Just hold the market portfolio forever. And that’s what the index fund does.”

On the classic index funds. Advocates that buying classic index funds, that have low cost management fees, and holding it for the long term. Cites figures and quotes to show why. Says when considering investments, to take into account market transaction costs (brokerage etc.) and taxes.

p 114 “common sense tells us that performance comes and goes, but costs go on forever.”

Straightforward. Easy to read. He writes like a salesman. Book seems to target at skeptics (which is not surprising as the simple message does make one question the amount of investment out there). He seems to anticipate skepticism and intersperses the chapters with quotes from articles that cite big wigs (including warren buffet) in the financial sector who support his thesis.

Scope is on US investors and market.

Main focus on stock market and mutual fuunds (US based). Also covers:

Chapter 13 – on Bond Funds and Money Market Funds.

Chapter 15 – on Exchange Traded Funds. That all-stock-market ETFs are the only instance that can replicate, and possibly even improve on, the five paradigms of the original index funds listed earlier. But only when they are bought and held for the long-term.”

The first chapter of his book can be downloaded from this post.