The little book about investing by John C bogle, and one thing I want to say before I tell you guys the main three nuggets to these books. ✅2 FREE AUDIOBOOKS✅ [ Ссылка ]

The Little Book of Common Sense Investing Book Review | John C. Bogle

1. For the first Nugget ( the overall idea of the Book is to compare investing strategies )
- Investing in Individual Stocks
- Investing with high fee/high turn over Mutual Funds
- Investing with low-cost index funds

Example: Individual investing
- Everyone has probably heard about tesla and how the stock went up in price
- A lot of people that call themselves investors went and bought some, just because they heard its good
- Now the stock went down and they sold and lost money, but don’t know what happened.
The idea is: to do this type of investing, you need to understand how to analyze a business vs its stock market valuation. So you basically have to find a business with more value than what the market is giving them.
- Which takes warren buffer around 5-8 hours of reading every day, to invest in 1-3 companies per year. ( so it's not as simple as YouTubers/yahoo and all these people paint it )

Example 2: Investing with a High Fee Mutual Fund that promises to beat the market
Example:
- I called a company the other day, and they said we manage your entire portfolio and provide professional advice, tax harvesting, and our job is to try to beat the market
- I asked how much would this cost? He said well just 1% of your portfolio value per year, which is a pretty good price.
- But when I told him, I don’t want any of those features I just want to hold for 40 years and make no trades. ( he said well we still have to charge 1%)
The idea is: If I invest 10k, and didn’t contribute anything more to, and left it for 40 years, and got back 7% without accounting for inflation.
Fund A: .09% = cost me 5k
Fund b : 1.02% = cost 49k
So when they tell you its only 1%, don’t trust it:

Example 3: Investing with low-cost index funds
Example:
- Right now I use acorn to invest and basically investing into 80 stock-based ETF and 20% bonds ETF
- Overall in the past year, I’ve gained 9.42% and also 2.35% in dividends ( adjusted for inflation 2.5%, that’s still 9.27% gain)
- So just like the prior example, my investment will grow, but not pay all the money 33% of my value in fees.
That’s why John, believed so much in index funds.

2. The Stock Market is Not a Casino but people Gamble like it is
Three Main rules that I learned from this book and many others.

- You can't predict the market, so beating it is impossible over 50 years, so riding the wave is much better.

Interest fact: Only 2% of mutual funds managers beat the market for more than 30 years (it's like finding a needle in the haystack)

- If its sounds to good to be true then it probably is
Example: Every day I see people talking about
• How they are going to make millions with forex trading
• Millions day trading
• Millions with bitcoin
The truth is, most of those people are following the trend, and they just want to be the next literally ticket winner.

- Average and boring with investing is good
Simple plans more than often always win.
But having a complicated plan is usually a salesman trying to convince you of all the great stuff he's doing.


3. Pick Your Cards ( either Low-Cost index Fund or Picking stocks, or being okay with 33% of your value being loss)

I know I use these analogies of casinos and cards, but at its core, the stock market is just a list of businesses with set values, but people let emotion get in the way.

For me: Currently, I’m investing 5% of all my income, but my plan is to get to 25% of my income invested into index funds and ETFs, and then 65% into investing activities like real estate and 10%/50-70k to enjoy life.

In the end:

Picking is going to be hard work but done correctly it’ll be worth the 5-8 hours of reading.

High cost: is expensive and you’ll lose a big junk

Low cost is great and you’ll get the most benefit for the least amount of work.

But: the worst thing you could do is not take action. Whether it’s the market or any investment, the goal should always be to make your money work for you.

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