The Little Book of Common Sense Investing by John C. Bogle

This course examines the investment philosophy of John C. Bogle, emphasizing the long-term reliability of broad-market index funds. It explains why owning a diversified portfolio of all publicly held businesses at a low cost is the most effective strategy for accumulating wealth. By analyzing the Gotrocks parable, the lessons demonstrate the difference between a winner’s game of market participation and a loser’s game of active trading. You will learn how market returns are generated and why attempting to pick individual stocks or time the market consistently fails for most investors. The curriculum covers the fundamental transition from active management to passive indexing, highlighting the importance of capturing the full return of the economy rather than chasing fleeting out-performance. A significant portion of the series focuses on the mathematical reality of fees and taxes. These expenses act as a drag on compounding, often turning potentially high returns into mediocre outcomes. The material explains how high turnover and active management fees erode wealth over time. In addition to equity indexing, the course explores how to apply the same low-cost philosophy to bond and money-market funds to create a balanced portfolio. Practical guidance is provided on selecting funds based on expense ratios and simplicity. The final sessions address modern tools like Exchange-Traded Funds (ETFs) and the historical perspectives of Benjamin Graham. By the end of the course, you will understand the relentless rules of humble arithmetic and have a concrete plan to maintain a disciplined, low-cost investment strategy for the future.