The Bogleheads’ Guide to Investing: Overview

The Bogleheads' Guide To InvestingAs an investor with Vanguard and an occasional visitor to the Vanguard Diehards forum, I’ve been looking forward to reading The Bogleheads’ Guide to Investing for a while now. It’s a guide to how to invest your money written based on the principles of Jack Bogle, the founder of Vanguard. Is it a good read for you? Let’s find out.

A good subtitle for this book would be “An introduction to how to invest conservatively,” because that’s exactly what you’ll find within the covers of this book. It is a fantastic guide for investing for the long term, minimizing the costs and taxes associated with investing, and most of the basic principles of conservative investment (diversifying your portfolio widely, not betting the whole farm on stocks, and so on).

The book basically moves deliberately from the basics behind investing and what you need to get started, then moves from investment to investment, explaining the ins and outs of each and explaining the fundamentals of an overall investment philosophy. These guys are as low risk as can be for investors in the stock market, which is a welcome change of pace from some of the frenetic individual stock pickers I’ve read recently.

In fact, that’s what makes this book stand out: rather than just distributing a bunch of bromides, it is clear from beginning to end that this book is describing an overall philosophy about what to do with your money. Many other books of this type simply provide a bunch of rules to follow; this one is rooted in the basic idea that you should be an investment conservative: low risk with growth targeting the long haul. It’s an interesting approach – and it makes for a very interesting book.

This week, I’ll dig through this one chapter by chapter to see what’s inside.

The Bogleheads’ Guide to Investing is the nineteenth of fifty-two books in The Simple Dollar’s series 52 Personal Finance Books in 52 Weeks.

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