The Little Book of Common Sense Investing in English

The Little Book of Common Sense Investing in English

By Raja BabuArtsBooks
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The Little Book of Common Sense Investing in English episodes

  • Yesterday’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.)
    10 min
  • Selecting 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.
    14 min
  • When 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
    16 min
  • Taxes 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.
    13 min
  • The 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.
    14 min
  • How 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.
    17 min
  • Cast 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.
    15 min
  • Rational 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.
    11 min
  • A 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.
    8 min
  • Introduction
    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.
    12 min

About The Little Book of Common Sense Investing in English

From the publisher's feed

To Paul A. Samuelson, professor of economics