Common Sense on Mutual Funds

John C. Bogle, the Vanguard Group founder and mutual fund pioneer, uses Common Sense on Mutual Funds to teach investors how the fund industry works. He makes the case for index funds and for holding to a long-term strategy, arguing that simplicity and common sense beat expensive complexity. In his view a broadly diversified, low-cost portfolio is almost certain, over the long run, to beat most Wall Street professionals. A completely updated second edition revisits the industry's structural and regulatory changes. The book became a bestseller and appeared on a ConsumerAffairs.com list of business books that could help make readers rich. Though it addresses American investors, The Independent judged its lessons relevant to British funds too.

Mohnish Pabrai called it a wonderful book and urges every investor to read all of Bogle's writing, which he sees as firmly rooted in theory and extensive empirical data.