"Cogent, honest, and hard–hitting a must read–for every investor."
Warren E. Buffett
Praise for Common Sense On Mutual Funds fully updated 10th anniversary edition
"The only thing better than Bogle′s original book is its improved revision. Bon appetit!"
Paul A. Samuelson, Nobel Laureate, Economics
"Were I allowed to recommend only one investment volume to friends and family, the updated edition of Common Sense on Mutual Funds would be it it is even better than the first edition was ten years ago."
William J. Bernstein, author of The Investor′s Manifesto, A Splendid Exchange, The Birth of Plenty, and The Four Pillars of Investing
"How do you improve upon perfection? Well, with this tenth anniversary edition of Common Sense on Mutual Funds, the best mutual fund primer just got better."
Don Phillips, Managing Director, Morningstar
"In this timely update of Common Sense on Mutual Funds, John Bogle improves on what was the finest book on mutual funds ever written."
Jane Bryant Quinn, financial columnist and author of Smart and Simple Financial Strategies for Busy People
"Jack Bogle cares passionately about everyday Americans and that passion is palpable in these pages. This new edition of Common Sense on Mutual Funds will send you marching into the financial markets with a sense of mission."
Jonathan Clements, author of The Little Book of Main Street Money
"When the history of modern investment management is written, John Bogle will stand out as one of its towering figures."
Byron R. Wien, Vice Chairman, Blackstone Advisory Services
"A powerful no–nonsense prescription for how individual investors should structure their portfolios in the current market environment."
Martin Leibowitz, Managing Director, Morgan Stanley
Foreword for the 10th Anniversary Edition ix
Foreword for the Original Edition xiii
Preface to the 10th Anniversary Edition xv
Preface to the Original Edition xix
Acknowledgments for the 10th Anniversary Edition xxvii
Acknowledgments for the Original Edition xxix
About the Author xxxi
PART I: On Investment Strategy 1
Chapter 1 On Long–Term Investing 3
Chance and the Garden
Chapter 2 On the Nature of Returns 45
Occam s Razor
Chapter 3 On Asset Allocation 77
The Riddle of Performance Attribution
Chapter 4 On Simplicity 109
How to Come Down to Where You Ought to Be
PART II: On Investment Choices 143
Chapter 5 On Indexing 145
The Triumph of Experience over Hope
Chapter 6 On Equity Styles 191
Chapter 7 On Bonds 217
Treadmill to Oblivion?
Chapter 8 On Global Investing 251
Acres of Diamonds
Chapter 9 On Selecting Superior Funds 277
The Search for the Holy Grail
PART III: On Investment Performance 303
Chapter 10 On Reversion to the Mean 305
Sir Isaac Newton s Revenge on Wall Street
Chapter 11 On Investment Relativism 329
Happiness or Misery?
Chapter 12 On Asset Size 347
Nothing Fails Like Success
Chapter 13 On Taxes 373
The Message of the Parallax
Chapter 14 On Time 401
The Fourth Dimension Magic or Tyranny?
PART IV: On Fund Management 423
Chapter 15 On Principles 425
Important Principles Must Be Inflexible
Chapter 16 On Marketing 445
The Message Is the Medium
Chapter 17 On Technology 465
To What Avail?
Chapter 18 On Directors 483
Serving Two Masters
Chapter 19 On Structure 503
The Strategic Imperative
PART V: On Spirit 533
Chapter 20 On Entrepreneurship 535
The Joy of Creating
Chapter 21 On Leadership 549
A Sense of Purpose
Chapter 22 On Human Beings 567
Clients and Crew
Appendix I Some Thoughts about the Current Stock Market as 2010 Begins 591
Appendix II Some Thoughts about the Current Stock Market as 1999 Begins 599