Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor

Amazon.com
Invoking the words and spirit of Thomas Paine, investor-turned-historian John Bogle concedes that his ideas for revamping the mutual-fund industry are perhaps "not yet sufficiently fashionable to procure them general favor." But despite likening the "ills and injustices suffered by mutual fund investors" to those "our forebears suffered under English tyranny," Bogle--founder of the Vanguard Group--makes a strong case for index funds with this exhaustive study of investing.

He begins with primer-like essays on investment strategy, championing mutual funds for their inherent investment value, and then grinding each point home with a bevy of graphs, charts, entertaining anecdotes, and common sense. He repeatedly stresses time as a basic tenet for investing, listing these simple rules: "Time is your friend"; "Impulse is your enemy"; "Stay the course." And then he proceeds to blast fund managers, who have become marketers rather than managers. The trade-off between the profits that accrue to fund shareholders and the profits that accrue to the fund management companies seems subject to no effective independent watchdog or balance wheel, despite the fact that the shareholders actually own the mutual funds. It's an interesting concept: smart, reasoned investors can all but secure their financial future, but the system itself, run unchecked by fund managers, needs a major overhaul. And considering the amount of reasoned, historically based support he includes, readers will have a hard time finding fault with the sometimes controversial Bogle. Equal parts instructional and crusade, Common Sense on Mutual Funds deserves the attention it's likely to receive. Recommended.


From Publishers Weekly
Not that many years ago, an average bookstore might have had two or three books on mutual funds filed away in the business section. Today, as the number of Americans who invest in mutual funds continues to grow, such books take up several aisles in a section of their own. There are guides for data junkies and mathphobes, books that tell how to make a killing and books that tell how to avoid the coming disaster. A few classics stand above the clutter. Bogle on Mutual Funds is one of them. Now the same author has added another. While the first book aimed at educating beginners, the new one seeks to persuade experienced investors to discard received wisdom that isn't so wise after all. While no 450-page work on mutual funds with lots of charts can be considered fun summer reading, the book is always informative and the writing never worse than painless and sometimes quite lively. Bogle speaks with a rare authority. On one hand, he is the founder of Vanguard mutual funds, the second-largest mutual fund company in the world. So he knows the business from the ground up. On the other hand, Vanguard has always been famous for running the lowest-cost mutual funds, funds that eschew loads, engage in sensible strategies and return all profit to the investors. So Bogle is also a leading consumer advocate. That rare combination, mixed with years of serious research and a dash of style, makes Bogle an unparalleled guide to the world of mutual funds. Money Book Club alternate. Copyright 1999 Reed Business Information, Inc.


From AudioFile
This is the perfect remedy for overconfident investors who are tempted to become more active in managing their holdings. The prescription is conservative advice: Balance your portfolio with high-quality stocks and bonds and hold them. Without preaching, Bogle reminds us of the transaction costs of frequent trading and of the impossibility of timing the market--let alone individual stocks. He tells us about the pros and cons of all types of funds with a clarity and assuredness that listeners will warm up to. The author is a great teacher and likeable narrator. This comprehensive lesson on mutual funds is a cut above most audios on investing. T.W. © AudioFile 2001, Portland, Maine-- Copyright © AudioFile, Portland, Maine


Review
"...A solid advisor in the world of charlatans, false prophets and hysterics and can be recommended to everyone." (Financial Times - Germany, 27th February 2001)

FROM THE PUBLISHER

In Common Sense on Mutual Funds, Bogle takes a critical look at the mutual fund industry and how we invest, and charts a compelling course for change. This book examines the fundamentals of mutual fund investing alongside industry practices that are often in conflict with a sound long-term investment program. Common Sense on Mutual Funds shows investors how to revolutionize their portfolios by embracing simplicity and then avoiding industry pitfalls. Emphasizing long-term investing and asset allocation, Bogle finds in simplicity the solution to the riddle of fund selection by investors. From stock and bond funds to global investing and index funds, Common Sense on Mutual Funds provides insight, illumination, and enlightenment. Organized as a series of essays on the investment issues of the day, this insider's view of the industry makes vital information on mutual funds accessible to experienced investors as well as those just beginning.

SYNOPSIS

The pioneering visionary of the Vanguard Group guides investors through the realities of selecting mutual funds today.

FROM THE CRITICS

Financial Times

...A solid advisor in the world of charlatans, false prophets and hysterics and can be recommended to everyone.

Investment Adviser

Bogle has written an incredibly insightful and impassioned study of the mutual funds industry. The study is lucid, invigorating and well informed.

Library Journal

Vanguard Group founder and chair Bogle (Bogle on Mutual Funds) shares his classic ideas on how best to maximize investments in mutual funds, showing investors how to embrace simplicity and revolutionize their portfolios. The world's largest no-load mutual fund group, Vanguard has risen to the top of the heap of fund companies, following Bogle's advice on such topics as tactical allocation, long-term investing, investment relativism, rapid turnover, owning the right number of funds, and selecting index funds. The opening primer on investment strategy and the author's preference for mutual funds for their inherent value is balanced with a keen perspective on his view of the need for a major redirection of the industry, making for a solid package. The excellent narration by Grover Gardner guides serious listeners through this exemplary approach to investing in these funds. Highly recommended for all university libraries supporting a business curriculum and larger public libraries.--Dale Farris, Groves, TX Copyright 2000 Cahners Business Information.

AudioFile

This is the perfect remedy for overconfident investors who are tempted to become more active in managing their holdings. The prescription is conservative advice: Balance your portfolio with high-quality stocks and bonds and hold them. Without preaching, Bogle reminds us of the transaction costs of frequent trading and of the impossibility of timing the market—let alone individual stocks. He tells us about the pros and cons of all types of funds with a clarity and assuredness that listeners will warm up to. The author is a great teacher and likeable narrator. This comprehensive lesson on mutual funds is a cut above most audios on investing. T.W. © AudioFile 2001, Portland, Maine

Worth

Heart transplant and related jokes notwithstanding, he's at the top of his game. Those who mocked him 10 or 15 years ago are now scrambling to imitate him. I am referring, of course to Vanguard Group founder and chairman John Bogle, the self-appointed conscience and chief skinflint of the mutual-fund industry.Read all 7 "From The Critics" >

WHAT PEOPLE ARE SAYING

Jack Bogle still believes candor with investors, integrity in investing, and low cost are important. Thank goodness. Thank you, Jack. You are so right!  — (Charles D. Ellis, author, Winning the Loser's Game)

Buffett cannot teach you or me how to become a Warren Buffett. Bogle's reasoned precepts can enable a few million of us savers to become in twenty years the envy of our suburban neighbors — while at the same time we have slept well in these eventful times.  — (Paul A. Samuelson, Massachusetts Institute of Technology, Department of Economics)

I date my success as an investor from the day I met Jack Bogle and learned about index mutual funds. If you want to do better in the market, and really understand what you're doing, read this book.  — (Jane Bryant Quinn, Newsweek columnist and author, Making the Most of Your Money)

Jack Bogle has championed and served individual investors since before the popular concept of `individual investor' existed.  — (David Gardner, Co-founder, The Motley Fool)

Superior in intellect, character, and performance, the investment genius who defied conventional wisdom and proved his critics wrong gives readers a wealth of practical advice.  — (Hon. William E. Simon, Former Secretary of the Treasury)

Common Sense on Mutual Funds marks the culmination of one of Wall Street's most inspired careers. Invoking both Thomas Paine and Benjamin Graham, Jack Bogle outlines a supremely logical plan not only to better investors' returns, but to improve the whole fund industry. This isn't just the best book yet by Bogle, it may well be the best book ever on mutual funds.  — (Don Phillips, President and CEO Moningstar, Inc.)

Written in his characteristic forthright and visionary style, Bogle penetrates the myths and jargon to shed a powerful light on the central issues that confront every investor, no matter what their level of experience or sophistication.  — Martin L. Leibowitz

Common Sense on Mutual Funds explains how you can improve your returns for maximum results over the long term. Bogle gives practical advice on taxes, costs, and other mutual fund matters. This is a must read for the mutual fund investor.  — (Michael Bloomberg, Founder and CEO of Bloomberg, LP)

After a lifetime of picking stocks, I have to admit that Bogle's arguments in favor of the index fund have me thinking of joining him rather than trying to beat him. Bogle's wisdom and his commonsense way of explaining things make this book indispensable reading for anyone trying to figure out how to invest in this crazy stock market.  — (James J. Cramer, Money manager and senior columnist for TheStreet.com)

Cogent, honest and hard-hitting — a must read for every investor. — Warren E. Buffett

Jack Bogle is one of the great poineer/visionaries of the investment business. In this book he shares his knowledge, experience, and judgement to enable us to become better investors. The final philosophical chapters provide insights that may help some of us become better people.  — (Byron R. Wien, Chief U.S. Investment Strategist, Morgan Stanley Dean Witter)