Introduction to the 10th Anniversary Edition xv Chapter One A Parable 1 Chapter Two Rational Exuberance 9 Chapter Three Cast Your Lot with Business 25 Chapter Four How Most Investors Turn a Winner s Game into a Loser s Game 39 Chapter Five Focus on the Lowest-Cost Funds 53 Chapter Six Dividends Are the Investor s (Best?) Friend 65 Chapter Seven The Grand Illusion 73 Chapter Eight Taxes Are Costs, Too 85 Chapter Nine When the Good Times No Longer Roll 93 Chapter Ten Selecting Long-Term Winners 111 Chapter Eleven Reversion to the Mean 127 Chapter Twelve Seeking Advice to Select Funds? 139 Chapter Thirteen Profit from the Majesty of Simplicity and Parsimony 153 Chapter Fourteen Bond Funds 167 Chapter Fifteen The Exchange-Traded Fund (ETF) 179 Chapter Sixteen Index Funds That Promise to Beat the Market 195 Chapter Seventeen What Would Benjamin Graham Have Thought about Indexing? 209 Chapter Eighteen Asset Allocation I: Stocks and Bonds 223 Chapter Nineteen Asset Allocation II 237 Chapter Twenty Investment Advice That Meets the Test of Time 259 Acknowledgments 269
JOHN C. BOGLE is 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 is 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.