the little book of commonsense investing

But even those can’t guarantee you’ll get your money’s worth.

Of all the 355 mutual funds existing in 1970, only 34 are left today.

Every year what works changes completely. The stock market changes so fast that the systems that worked in 1990 didn’t even work in 1991, let alone 2016. Just because a fund manager has a phenomenal year does not mean he can just repeat the same thing the next year. Then, many people invest in that guy’s fund – and lose it all. Number one fund manager, analyst of the year, bla bla bla. It’s the same game, every single year. Come December, there’ll be a new, smiling face on the front of every finance magazine. If you want to save this summary for later, download the free PDF and read it whenever you want.ĭownload PDF Lesson 1: Actively managed funds suck, because past profits don’t guarantee future success. Ready for some common sense investing logic? Let’s invest in index funds! You can’t go wrong by just choosing the cheapest index fund.The majority of your money is best invested in safe, low-cost index funds.Actively managed funds suck, because past profits don’t guarantee future success.Here are 3 lessons about the power of index funds: In a time when everyone tried to beat the market with great stock picks and then charge expensive fees for it, he thought: “Why not just mimic what the indexes are doing and not manage anything?” This little thought turned into one of the most prevailing investment ideas of the following century, and one of the most respected investment companies in the world.īogle’s invention, the index fund, is still one of the safest and stress-free ways of investing today and in this little book he outlines why, and how you can get started with one. Listen to the audio of this summary with a free reading.fm account*:

The little book of commonsense investing