JOHN C. BOGLE was the founder and former chairman of the Vanguard Group of mutual funds and President of its Bogle Financial Markets Research Center. After creating Vanguard in 1974, he served as chairman and chief executive officer until 1996 and senior chairman until 2000. Bogle was the author of ten books, including Enough.: True Measures of Money, Business, and Life, The Little Book of Common Sense Investing, and Clash of the Cultures: Investment vs. Speculation, all published by Wiley.

• Foreword for the 10th Anniversary Edition ixForeword for the Original Edition xiiiPreface to the 10th Anniversary Edition xvPreface to the Original Edition xixAcknowledgments for the 10th Anniversary Edition xxviiAcknowledgments for the Original Edition xxixAbout the Author xxxiPart I: On Investment Strategy 1Chapter 1 On Long-Term Investing 3Chance and the GardenChapter 2 On the Nature of Returns 45Occam’s RazorChapter 3 On Asset Allocation 77The Riddle of Performance AttributionChapter 4 On Simplicity 109How to Come Down to Where You Ought to BePart II: On Investment Choices 143Chapter 5 On Indexing 145The Triumph of Experience over HopeChapter 6 On Equity Styles 191Tick-Tack-ToeChapter 7 On Bonds 217Treadmill to Oblivion?Chapter 8 On Global Investing 251Acres of DiamondsChapter 9 On Selecting Superior Funds 277The Search for the Holy GrailPart III: on Investment Performance 303Chapter 10 On Reversion to the Mean 305Sir Isaac Newton’s Revenge on Wall StreetChapter 11 On Investment Relativism 329Happiness or Misery?Chapter 12 On Asset Size 347Nothing Fails Like SuccessChapter 13 On Taxes 373The Message of the ParallaxChapter 14 On Time 401The Fourth Dimension—Magic or Tyranny?Part IV: on Fund Management 423Chapter 15 On Principles 425Important Principles Must Be InflexibleChapter 16 On Marketing 445The Message Is the MediumChapter 17 On Technology 465To What Avail?Chapter 18 On Directors 483Serving Two MastersChapter 19 On Structure 503The Strategic ImperativePart V: on Spirit 533Chapter 20 On Entrepreneurship 535The Joy of CreatingChapter 21 On Leadership 549A Sense of PurposeChapter 22 On Human Beings 567Clients and Crew Afterword 585Appendix I Some Thoughts about the Current Stock Market as 2010 Begins 591Appendix II Some Thoughts about the Current Stock Market as 1999 Begins 599Notes 607Index 613

"As founder of the giant mutual fund company, Vanguard Group, Bogle writes what he knows: how to steer one's way through mutual funds and the numbing variety of investment alternatives available today. His is a clear and readable style, and Bogle helps make still somewhat-arcane terms such as quantitative investing understandable."—SmartMoney.com"Common Sense on Mutual Funds, by John Bogle, inventor of the retail index fund and founder of the Vanguard Group. It's the best book ever on fund investing, just updated for new investors. The case for indexing is rock solid, as you'll see here. It's the only strategy that works, long term."—Jane's Book Club, http://janebryantquinn.com"Never before [have] I seen a book that so openly and successfully juxtaposed that which was said against that which actually happened over the period of a decade. . . As a long-time believer in low cost indexing, I didn't think I'd learn much from this book. I was wrong! Reading this book offers investors a glimpse of the perspective and lessons learned from recent years that were anything but normal. . . This book, of course, is even more valuable to those that aren't a believer in indexing. It may be a hard read if you're among those who still believe that 90 percent of investors can all be above average. Consider the effort well worth it because the common sense in this book may save your retirement. Reading this book might also help you realize, as I have, that common sense really is pretty uncommon."—Allan Roth, CBS Moneywatch.com"The definitive book on index fund investing. It explains why index fund investing is the best way — no, the only way — for people to invest their savings. . . [Bogle] does something few in the investing world would dare to do. He stands by what he said 10 years ago. The original text is presented unchanged. New data is added to reveal what happened over the past 10 years."—Scott Burns, The Austin American Statesman"A worthwhile addition to one's library, particularly as a reference publication. . . This ... revision of a book written ten years ago . . . with the original text still present in the book, and an analysis of the predictions that were made ten years ago. . . makes fascinating reading. The analysis of the predictions on their own makes the book worth a read, even if all one does is look at the coloured sections which contain the updated material."—Australian Investors Association"More Common Sense from Jack Bogle. Jack's back and he's unbowed. . . The tome holds up well after a decade. Bogle hasn't altered a word of the original text, just added color coded data and text boxes to show where he was on or off the mark. Guess what? Jack doesn't offer many mea culpas. . . The book is still essential reading for investors. Whether you think indexing is the best way to investor not, it's filled with simple, powerful advice that can help stack the odds of long-term financial success in your favor. Reading it then helped shape me as an investor and analyst. Here are the most important lessons (besides the obvious one: that indexing works) that I've drawn from the pages of both editions, as well as a couple of points where I, and many of my colleagues, dare to differ from St. Jack."—Morningstar

JOHN C. BOGLE was the founder and former chairman of the Vanguard Group of mutual funds and President of its Bogle Financial Markets Research Center. After creating Vanguard in 1974, he served as chairman and chief executive officer until 1996 and senior chairman until 2000. Bogle was the author of ten books, including Enough.: True Measures of Money, Business, and Life, The Little Book of Common Sense Investing, and Clash of the Cultures: Investment vs. Speculation, all published by Wiley.

• Foreword for the 10th Anniversary Edition ixForeword for the Original Edition xiiiPreface to the 10th Anniversary Edition xvPreface to the Original Edition xixAcknowledgments for the 10th Anniversary Edition xxviiAcknowledgments for the Original Edition xxixAbout the Author xxxiPart I: On Investment Strategy 1Chapter 1 On Long-Term Investing 3Chance and the GardenChapter 2 On the Nature of Returns 45Occam’s RazorChapter 3 On Asset Allocation 77The Riddle of Performance AttributionChapter 4 On Simplicity 109How to Come Down to Where You Ought to BePart II: On Investment Choices 143Chapter 5 On Indexing 145The Triumph of Experience over HopeChapter 6 On Equity Styles 191Tick-Tack-ToeChapter 7 On Bonds 217Treadmill to Oblivion?Chapter 8 On Global Investing 251Acres of DiamondsChapter 9 On Selecting Superior Funds 277The Search for the Holy GrailPart III: on Investment Performance 303Chapter 10 On Reversion to the Mean 305Sir Isaac Newton’s Revenge on Wall StreetChapter 11 On Investment Relativism 329Happiness or Misery?Chapter 12 On Asset Size 347Nothing Fails Like SuccessChapter 13 On Taxes 373The Message of the ParallaxChapter 14 On Time 401The Fourth Dimension—Magic or Tyranny?Part IV: on Fund Management 423Chapter 15 On Principles 425Important Principles Must Be InflexibleChapter 16 On Marketing 445The Message Is the MediumChapter 17 On Technology 465To What Avail?Chapter 18 On Directors 483Serving Two MastersChapter 19 On Structure 503The Strategic ImperativePart V: on Spirit 533Chapter 20 On Entrepreneurship 535The Joy of CreatingChapter 21 On Leadership 549A Sense of PurposeChapter 22 On Human Beings 567Clients and Crew Afterword 585Appendix I Some Thoughts about the Current Stock Market as 2010 Begins 591Appendix II Some Thoughts about the Current Stock Market as 1999 Begins 599Notes 607Index 613

"As founder of the giant mutual fund company, Vanguard Group, Bogle writes what he knows: how to steer one's way through mutual funds and the numbing variety of investment alternatives available today. His is a clear and readable style, and Bogle helps make still somewhat-arcane terms such as quantitative investing understandable."—SmartMoney.com"Common Sense on Mutual Funds, by John Bogle, inventor of the retail index fund and founder of the Vanguard Group. It's the best book ever on fund investing, just updated for new investors. The case for indexing is rock solid, as you'll see here. It's the only strategy that works, long term."—Jane's Book Club, http://janebryantquinn.com"Never before [have] I seen a book that so openly and successfully juxtaposed that which was said against that which actually happened over the period of a decade. . . As a long-time believer in low cost indexing, I didn't think I'd learn much from this book. I was wrong! Reading this book offers investors a glimpse of the perspective and lessons learned from recent years that were anything but normal. . . This book, of course, is even more valuable to those that aren't a believer in indexing. It may be a hard read if you're among those who still believe that 90 percent of investors can all be above average. Consider the effort well worth it because the common sense in this book may save your retirement. Reading this book might also help you realize, as I have, that common sense really is pretty uncommon."—Allan Roth, CBS Moneywatch.com"The definitive book on index fund investing. It explains why index fund investing is the best way — no, the only way — for people to invest their savings. . . [Bogle] does something few in the investing world would dare to do. He stands by what he said 10 years ago. The original text is presented unchanged. New data is added to reveal what happened over the past 10 years."—Scott Burns, The Austin American Statesman"A worthwhile addition to one's library, particularly as a reference publication. . . This ... revision of a book written ten years ago . . . with the original text still present in the book, and an analysis of the predictions that were made ten years ago. . . makes fascinating reading. The analysis of the predictions on their own makes the book worth a read, even if all one does is look at the coloured sections which contain the updated material."—Australian Investors Association"More Common Sense from Jack Bogle. Jack's back and he's unbowed. . . The tome holds up well after a decade. Bogle hasn't altered a word of the original text, just added color coded data and text boxes to show where he was on or off the mark. Guess what? Jack doesn't offer many mea culpas. . . The book is still essential reading for investors. Whether you think indexing is the best way to investor not, it's filled with simple, powerful advice that can help stack the odds of long-term financial success in your favor. Reading it then helped shape me as an investor and analyst. Here are the most important lessons (besides the obvious one: that indexing works) that I've drawn from the pages of both editions, as well as a couple of points where I, and many of my colleagues, dare to differ from St. Jack."—Morningstar

JOHN C. BOGLE was the founder and former chairman of the Vanguard Group of mutual funds and President of its Bogle Financial Markets Research Center. After creating Vanguard in 1974, he served as chairman and chief executive officer until 1996 and senior chairman until 2000. Bogle was the author of ten books, including Enough.: True Measures of Money, Business, and Life, The Little Book of Common Sense Investing, and Clash of the Cultures: Investment vs. Speculation, all published by Wiley.

• Foreword for the 10th Anniversary Edition ixForeword for the Original Edition xiiiPreface to the 10th Anniversary Edition xvPreface to the Original Edition xixAcknowledgments for the 10th Anniversary Edition xxviiAcknowledgments for the Original Edition xxixAbout the Author xxxiPart I: On Investment Strategy 1Chapter 1 On Long-Term Investing 3Chance and the GardenChapter 2 On the Nature of Returns 45Occam’s RazorChapter 3 On Asset Allocation 77The Riddle of Performance AttributionChapter 4 On Simplicity 109How to Come Down to Where You Ought to BePart II: On Investment Choices 143Chapter 5 On Indexing 145The Triumph of Experience over HopeChapter 6 On Equity Styles 191Tick-Tack-ToeChapter 7 On Bonds 217Treadmill to Oblivion?Chapter 8 On Global Investing 251Acres of DiamondsChapter 9 On Selecting Superior Funds 277The Search for the Holy GrailPart III: on Investment Performance 303Chapter 10 On Reversion to the Mean 305Sir Isaac Newton’s Revenge on Wall StreetChapter 11 On Investment Relativism 329Happiness or Misery?Chapter 12 On Asset Size 347Nothing Fails Like SuccessChapter 13 On Taxes 373The Message of the ParallaxChapter 14 On Time 401The Fourth Dimension—Magic or Tyranny?Part IV: on Fund Management 423Chapter 15 On Principles 425Important Principles Must Be InflexibleChapter 16 On Marketing 445The Message Is the MediumChapter 17 On Technology 465To What Avail?Chapter 18 On Directors 483Serving Two MastersChapter 19 On Structure 503The Strategic ImperativePart V: on Spirit 533Chapter 20 On Entrepreneurship 535The Joy of CreatingChapter 21 On Leadership 549A Sense of PurposeChapter 22 On Human Beings 567Clients and Crew Afterword 585Appendix I Some Thoughts about the Current Stock Market as 2010 Begins 591Appendix II Some Thoughts about the Current Stock Market as 1999 Begins 599Notes 607Index 613

"As founder of the giant mutual fund company, Vanguard Group, Bogle writes what he knows: how to steer one's way through mutual funds and the numbing variety of investment alternatives available today. His is a clear and readable style, and Bogle helps make still somewhat-arcane terms such as quantitative investing understandable."—SmartMoney.com"Common Sense on Mutual Funds, by John Bogle, inventor of the retail index fund and founder of the Vanguard Group. It's the best book ever on fund investing, just updated for new investors. The case for indexing is rock solid, as you'll see here. It's the only strategy that works, long term."—Jane's Book Club, http://janebryantquinn.com"Never before [have] I seen a book that so openly and successfully juxtaposed that which was said against that which actually happened over the period of a decade. . . As a long-time believer in low cost indexing, I didn't think I'd learn much from this book. I was wrong! Reading this book offers investors a glimpse of the perspective and lessons learned from recent years that were anything but normal. . . This book, of course, is even more valuable to those that aren't a believer in indexing. It may be a hard read if you're among those who still believe that 90 percent of investors can all be above average. Consider the effort well worth it because the common sense in this book may save your retirement. Reading this book might also help you realize, as I have, that common sense really is pretty uncommon."—Allan Roth, CBS Moneywatch.com"The definitive book on index fund investing. It explains why index fund investing is the best way — no, the only way — for people to invest their savings. . . [Bogle] does something few in the investing world would dare to do. He stands by what he said 10 years ago. The original text is presented unchanged. New data is added to reveal what happened over the past 10 years."—Scott Burns, The Austin American Statesman"A worthwhile addition to one's library, particularly as a reference publication. . . This ... revision of a book written ten years ago . . . with the original text still present in the book, and an analysis of the predictions that were made ten years ago. . . makes fascinating reading. The analysis of the predictions on their own makes the book worth a read, even if all one does is look at the coloured sections which contain the updated material."—Australian Investors Association"More Common Sense from Jack Bogle. Jack's back and he's unbowed. . . The tome holds up well after a decade. Bogle hasn't altered a word of the original text, just added color coded data and text boxes to show where he was on or off the mark. Guess what? Jack doesn't offer many mea culpas. . . The book is still essential reading for investors. Whether you think indexing is the best way to investor not, it's filled with simple, powerful advice that can help stack the odds of long-term financial success in your favor. Reading it then helped shape me as an investor and analyst. Here are the most important lessons (besides the obvious one: that indexing works) that I've drawn from the pages of both editions, as well as a couple of points where I, and many of my colleagues, dare to differ from St. Jack."—Morningstar