John C. Bogle is the founder and retired CEO of Vanguard and the Vanguard group of mutual funds. This book is the third volume in the “Little Books Series”. Which tells about the best specific investment policies. And we also say that this is the Bogle philosophy. Indeed, the smartest investment for most stock market investors is the large, low-fee index fund. Let's do a brief review of this book and know what BOGLE should write under the red cover. This book is based on eighteen chapters, and each chapter should contain ten to twenty pages. The goal of this book is to invest in low-cost index funds. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay. The brief review of this chapter is enough to define that many chapters focus on retelling Warner Buffet's classic tale of gotrocks and wizards. . Simply put, the individuals who have to pay to help you choose wisely when investing is that they are taking money away from you rather than making more. The moral is, in Buffett's words, that for investors as a whole, returns decrease as movement increases. An efficient investor invests through the intermediary, where the intermediary charges a minimum for his services. From Gotrocks' fable to chapter 1, Bogle attempts to apply the lesson of history to the title. Over the long term, he compares the company's return on investment with the return on investment in equity, and judges that the correlation is very strict. What do you mean? In the long term, investing in company stock is consistent with the success of the company itself. There may be short-term twists and turns in investor emotions, but when you buy stocks for the long term, you are investing in the core business. Short term stock market investing is therefore quite a different game than long term investing and we recognize that we do not understand the investor emotions required to play a short term game. Bogle here draws Ockham's razor (law of parsimony). Basically, all things are equal. The simplest solution is the best trend. From there, he talks about the general investment strategy of investing in a very broad stock (example S&P 500) that corresponds to the overall success of the stock market over the long term. After that, we compared the S&P 500 with large company funds and found that the S&P 500 outperformed the average of large other company funds in 26 years out of the last 35 years. Why this? Bogle actually responds in the next chapter of this chapter by stating that the stock market is a zero-sum game. For all the stocks that beat the market, there are stocks that won't beat the market. Adding them up is the market. For the average investor in the market, half of the stocks they choose cross the market, with half failing to exceed market value, on average relative to market value. But it's before the committee. If you add fees, the average investor won't beat the market. The return on investment is lower than the market, which is practically lower when fees are high. If the market returns 8% and pays 2.5% in fees, your return is really only 5.5%. You may have money in your savings account. This chapter is moving in a new direction, and emotions often point to this as the cause of further weakness in investor returns. Investors tend toinvesting in the stock market as the stock market rises, we exclude most of the profits. Here is an example. Let's say the stock market is at 10,000 at the beginning of 2010. At the beginning of 2011, the stock market is at 11,000, or 10% profit. People will decide to buy after watching the stock market rise and it will continue to grow and attract new investors. In 2013, the market peaked at 13,000, reaching 11,500 in early 2014. Average people who sat quietly and quietly averaged about 4% per year, while those who didn't buy until a year later, they only earn 2% each year. Another challenge for stock investors is the taxes covered by Chapter 6. In a nutshell, aggressively managed mutual funds take a percentage of realized capital gains and dividend income each year in law , which is terrible from a tax point of view. point of view - because it is necessary to pay dividends on a regular basis. This is an aggressively managed fund which means selling a large number of shares throughout the year, making substantial profits, and returning 90% of the profits to fund holders. Since index funds have very little active management, in most cases they will pay little on distribution, so taxes are rarely imposed. Therefore, compared to aggressively managed mutual funds, index funds are much better than tax. Here in this document, as we mentioned at the beginning of the chapter in most cases we observe that such a moment is widely considered, we see that the return time is short. During these periods, the actual return of managed mutual funds will reach 0% much faster than index funds intend. In other words, intentions with long-term index funds that lose money with managed funds. It's easy to tell when an index fund is losing money and when a particular managed fund has made a profit, but this is a huge anomaly due to factors that depend on it. This chapter mainly shows the performance of mutual funds managed over 35 years. Over those 35 years, less than 1% of the fund actually broke the market by more than 2% per year and survived alongside investor growth. Over the next 35 years, these funds may repeat their trading results due to changing fund manager sales and market trends. In other words, long-term managed funds rarely beat almost any stock market. Clearly, some funds stand to benefit from the boom in some areas over others. For example, some funds did a remarkable job of dominating the market in 1998 and 1999, thanks to the Internet boom of the late 1990s. What happened to the fund? Almost universally, they experienced an incredibly huge collapse between 2000 and 2002, far outpacing the overall market downturn. Even when averaging, we get much worse results than the market itself. If you want to do a short dance, you can make money this way, but investing in certain areas is not a healthy situation in the long run. This chapter mainly shows whether or not to spend money on an investment advisor. And the chapter says, “No.” In fact, most advisors are far worse than the market since the fees were calculated. Please invest directly in the index fund with cash instead. Don't worry. For me, that's already what I'm doing and I couldn't be happier about it. Starting here, I talk about how ?.