The book is divided into eighteen chapters,Chapter One: A Parable.
Chapter Two: Rational Exuberance.
Chapter Three: Cast Your Lot with Business.
Chapter Four: How Most Investors Turn a Winner’s Game into a Loser’s Game.
Chapter Five: The Grand Illusion.
Chapter Six: Taxes Are Costs, Too.
Chapter Seven: When the Good Times No Longer Roll.
Chapter Eight: Selecting Long-Term Winners.
Chapter Nine: Yesterday’s Winners, Tomorrow’s Losers.
Chapter Ten: Seeking Advice to Select Funds?
Chapter Eleven: Focus on the Lowest-Cost Funds.
Chapter Twelve: Profit from the Majesty of Simplicity.
Chapter Thirteen: Bond Funds and Money Market Funds.
Chapter Fourteen: Index Funds That Promise to Beat the Market.
Chapter Fifteen: The Exchange Traded Fund.
Chapter Sixteen: What Would Benjamin Graham Have Thought about Indexing?
Chapter Seventeen: “The Relentless Rules of Humble Arithmetic.”
Chapter Eighteen: What Should I Do Now?At the end of each chapter, there is the “Don’t Take My Words for It” section, where Bogle quoted some of the world’s best financial minds in support of the arguments presented in the chapter.One chapter that may be particularly relevant for many readers is Chapter 3, “The Illusion of Active Management.” In this chapter, Bogle discusses the evidence that suggests that actively managed mutual funds, which try to outperform the market by selecting individual stocks or bonds, often fail to do so in the long run. He argues that the vast majority of actively managed funds underperform their benchmark indexes, and that this underperformance is due, in large part, to the high fees that these funds charge.Another chapter that may be of interest is Chapter 7, “The Paradox of Success.” In this chapter, Bogle discusses how the success of mutual fund companies and investment managers can often lead to their own downfall, as they become too large and unwieldy to continue to generate strong returns for their investors. He argues that investors should instead focus on finding low-cost index funds that offer broad diversification and are more likely to deliver long-term returns that meet or exceed their benchmarks.Bogle also advises investors to be cautious about taking financial advice from those who stand to benefit financially from their recommendations, such as financial advisors who receive commissions for selling particular products. He advises investors to be especially wary of those who make grandiose claims or promise quick or easy solutions, as these are often red flags that the advice may not be in the investor’s best interests.Bogle advises investors to avoid the temptation to chase short-term performance and instead focus on building a long-term, diversified portfolio. He notes that many actively managed funds that have performed well in the past often underperform in the future, and that it is difficult to predict which funds will outperform in the short term.Don’t try to time the market: Bogle advises investors to avoid trying to “time” the market by trying to predict when to buy and sell stocks or other investments. He notes that this can be a futile and costly exercise, and advises investors to instead focus on building a long-term, diversified portfolio and holding onto it through good times and bad.
Chapter Two: Rational Exuberance.
Chapter Three: Cast Your Lot with Business.
Chapter Four: How Most Investors Turn a Winner’s Game into a Loser’s Game.
Chapter Five: The Grand Illusion.
Chapter Six: Taxes Are Costs, Too.
Chapter Seven: When the Good Times No Longer Roll.
Chapter Eight: Selecting Long-Term Winners.
Chapter Nine: Yesterday’s Winners, Tomorrow’s Losers.
Chapter Ten: Seeking Advice to Select Funds?
Chapter Eleven: Focus on the Lowest-Cost Funds.
Chapter Twelve: Profit from the Majesty of Simplicity.
Chapter Thirteen: Bond Funds and Money Market Funds.
Chapter Fourteen: Index Funds That Promise to Beat the Market.
Chapter Fifteen: The Exchange Traded Fund.
Chapter Sixteen: What Would Benjamin Graham Have Thought about Indexing?
Chapter Seventeen: “The Relentless Rules of Humble Arithmetic.”
Chapter Eighteen: What Should I Do Now?At the end of each chapter, there is the “Don’t Take My Words for It” section, where Bogle quoted some of the world’s best financial minds in support of the arguments presented in the chapter.One chapter that may be particularly relevant for many readers is Chapter 3, “The Illusion of Active Management.” In this chapter, Bogle discusses the evidence that suggests that actively managed mutual funds, which try to outperform the market by selecting individual stocks or bonds, often fail to do so in the long run. He argues that the vast majority of actively managed funds underperform their benchmark indexes, and that this underperformance is due, in large part, to the high fees that these funds charge.Another chapter that may be of interest is Chapter 7, “The Paradox of Success.” In this chapter, Bogle discusses how the success of mutual fund companies and investment managers can often lead to their own downfall, as they become too large and unwieldy to continue to generate strong returns for their investors. He argues that investors should instead focus on finding low-cost index funds that offer broad diversification and are more likely to deliver long-term returns that meet or exceed their benchmarks.Bogle also advises investors to be cautious about taking financial advice from those who stand to benefit financially from their recommendations, such as financial advisors who receive commissions for selling particular products. He advises investors to be especially wary of those who make grandiose claims or promise quick or easy solutions, as these are often red flags that the advice may not be in the investor’s best interests.Bogle advises investors to avoid the temptation to chase short-term performance and instead focus on building a long-term, diversified portfolio. He notes that many actively managed funds that have performed well in the past often underperform in the future, and that it is difficult to predict which funds will outperform in the short term.Don’t try to time the market: Bogle advises investors to avoid trying to “time” the market by trying to predict when to buy and sell stocks or other investments. He notes that this can be a futile and costly exercise, and advises investors to instead focus on building a long-term, diversified portfolio and holding onto it through good times and bad.
