The Little Book of Common Sense Investing in English episodes:

• May 06, 2025Yesterday’s Winners, Tomorrow’s Losers

  Chapter Nine

  Yesterday’s Winners,

  Tomorrow’s Losers

  -

  Fooled by Randomness*

  IN SELECTING MUTUAL FUNDS, most fund investors seem

  to rely, not on sustained performance over the long term, but

  on exciting performance over the short term. (Exhibits 5.2

  and 5.3 in Chapter 5 reinforce this point.)

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• May 06, 2025Selecting Long-Term Winners

  Chapter Eight

  Selecting Long-Term

  Winners

  -

  Don’t Look for the Needle—

  Buy the Haystack.

  SELECTING WINNING FUNDS in advance is more diffi-

  cult than it looks. Sure, there are always some winners

  that survive over the years. And if we pore over records

  of past performance, it is easy to find them.

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• May 06, 2025When the Good Times No Longer Roll

  Chapter Seven

  When the Good Times

  No Longer Roll

  -

  What Happens If

  Future Returns Are Lower?

  REMEMBER THE UNFAILING principle described in

  Chapter 2: in the long run it is the reality of business—the

  dividend yields and earnings growth of corporations—that

  drives the returns generated by the stock market. How-

  ever, I must warn you that during the past 25 years—the

  period examined in the three preceding chapters—the

  12.5 percent nominal annual return provided by the U.S.

  stock market included a speculative return of nearly 3

  percent per year, far above the business reality

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• May 06, 2025Taxes Are Costs, Too

  Chapter Six

  Taxes Are Costs, Too

  -

  Don’t Pay Uncle Sam Any More

  Than You Should.

  WE STILL AREN’T THROUGH with these relentless rules

  of humble arithmetic—the logical, inevitable, and unyield-

  ing long-term penalties assessed against stock market par-

  ticipants by investment expenses and the powerful impact

  of inflation—that have slashed the capital accumulated by

  mutual fund investors.

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• May 02, 2025The Grand Illusion

  Chapter Five

  The Grand Illusion

  -

  Surprise! The Returns Reported

  by Mutual Funds Aren’t Actually

  Earned by Mutual Fund Investors.

  IT IS GRATIFYING THAT industry insiders such as the In-

  vestment Company Institute’s (ICI’s) chairman Jon Fossel,

  Fidelity’s Peter Lynch, Mad Money’s James Cramer, and

  AQR’s Clifford Asness agree with me about the inevitable

  inadequacy of returns earned by the typical equity mutual

  fund relative to the returns available simply by owning the

  stock market through an index fund based on the S&P 500.

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• May 02, 2025How Most Investors Turn a Winner’s Game Into a Loser’s Game

  Chapter Four

  How Most Investors Turn a Winner’s Game Into a Loser’s Game

  -

  “The Relentless Rules

  of Humble Arithmetic”

  BEFORE WE TURN TO the success of indexing as an invest-

  ment strategy, let’s explore in a bit more depth just why it is

  that investors as a group fail to earn the returns that our

  corporations generate through their dividends and earnings

  growth, ultimately reflected in the prices of their stocks.

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• May 02, 2025Cast Your Lot With Business

  Chapter Three

  Cast Your Lot With Business

  -

  Rely on Occam’s Razor

  to Win by Keeping It Simple.

  SO HOW DO YOU cast your lot with business? Simply by

  buying a portfolio that owns the shares of every business

  in the United States and then holding it forever.

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• May 02, 2025Rational Exuberance

  Chapter Two

  Rational Exuberance

  -

  Business Reality Trumps

  Market Expectations.

  THAT WONDERFUL PARABLE ABOUT the Gotrocks family

  in Chapter 1 brings home the central reality of investing:

  “The most that owners in the aggregate can earn between

  now and Judgment Day is what their business in the aggre-

  gate earns,” in the words of Warren Buffett.

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• May 02, 2025A Parable

  Chapter One

  A Parable

  -

  The Gotrocks Family

  EVEN BEFORE YOU THINK about “index funds”—

  in their most basic form, mutual funds that simply buy

  all the stocks in the U.S.

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• May 02, 2025Introduction

  Introduction

  -

  Don’t Allow a Winner’s Game

  to Become a Loser’s Game.

  SUCCESSFUL INVESTING IS ALL about common sense.

  As the Oracle has said, it is simple, but it is not easy.

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