The Little Book of Common Sense Investing in English

Chapter Eighteen
What Should I Do Now?
-
Funny Money, Serious Money,
and Investment Strategy
DEEP DOWN, I REMAIN absolutely confident that the
vast majority of American families will be well served by
owning their equity holdings in an all-U.S.

Chapter Seventeen
“The Relentless Rules
of Humble Arithmetic”
-
Reprise
IF THE MESSAGE IN this book comes across as confident,
please understand that it is little more than common
sense. Even more, please understand that my confidence
in the index fund is buttressed by the conclusions of many
of the smartest, most experienced, most successful in-
vestors in the United States including Warren Buffett,
Charlie Munger, and Benjamin Graham, along with top
academics and endowment managers—Nobel Laureates
Paul Samuelson, William Sharpe, and Daniel Kahneman
and Princeton’s Burton Malkiel, Yale’s David Swensen,
Harvard’s Jack Meyer, and MIT’s Andrew Lo.

Chapter Sixteen
What Would Benjamin
Graham Have Thought
about Indexing?
-
A Confirmation from Mr. Buffett
THE FIRST EDITION OF The Intelligent Investor was pub-
lished in 1949. It was written by Benjamin Graham, the
most respected money manager of the era, and coauthor
(with David Dodd) of Security Analysis, a scholarly tome
originally published in 1934.

Chapter Fifteen
The Exchange
Traded Fund
-
A Trader to the Cause
EVEN BEFORE THE RISE of the so-called new paradigm of
fundamental indexing described in Chapter 14, traditional
indexing was being challenged by a sort of wolf-in-sheep’s
clothing, the exchange traded fund (ETF).

Acknowledgments
IN WRITING THIS BOOK, I have received incredibly
wonderful support from the entire (three-person) staff of
Bogle Financial Markets Research Center, the Vanguard-
supported unit that began its formal activities at the
beginning of 2000.