I remember sitting in a high school class listening to the explanation of the stock market. The homework assignment that followed includes a fictitious amount of money with instructions to pick stocks out of the newspaper and let’s see if we can make money. This was a pre-google era so all those abbreviations meant very little to me. On a side note, it was a total travesty on how high school classes taught the stock market. Fast forward, now I have a family and while retirement seems like a long way off, people are talking more about it. I hear questions about market performance and coworkers talking about beating the market. Now we are in the Amazon era, so it’s time to use my Amazon Prime for some free shipping.
One of the first books I read was by Jack Bogle. Jack founded Vanguard Company, which is one of the premier investments advisors and has grown to manage over $4.5 trillion. His book, The Little Book of Common Sense Investing, was published in 2007. While I shy away from older books such as investing which I generally view as more time sensitive topic, this was worth the risk for less than $20. If I was going to take my retirement seriously, I want to know what an expert like Jack knows.
His book is a basic introduction to the stock market and index funds. If you have knowledge of index funds and the real concept of how the stock market works (not what they taught in high school) then this book may be too basic for you. However if you are beginning to think about retirement and investment accounts you should start here.
With chapters such as:
How most investors turn a winner’s game into a loser game
The grand illusion
Taxes are costs, too
When the good times no longer roll
Yesterday’s winners, tomorrows Losers
Profit from the Majesty of Simplicity