Interesting book to read: The Bogleheads’ Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk
Born in 1924 during the roaring market of the 1920’s which then soon turned into the worst depression era, Taylor – now in his 90-ies – has learned so many lessons about the (stock) market. He has encountered multiple market ups and downs and in between has learned so many valuable lessons. Now he’s is known as the King of the Bogleheads, he’s willing to share his lessons-learned to the rest of us via this book: The Bogleheads’: The Guide to Three-Fund Portfolio.
In case you don’t know what Bogleheads means, in short, it’s a term intended to honor Vanguard founder and investor advocate John C. Bogle (also known as Jack Bogle) that’s now used by investing enthusiasts (Taylor was the pioneer) who shares the same view / philosophy as John C. Bogle. John was the one creating the first Index Fund, who are now used by millions of investors who want simplicity over complexity when it comes to investing.
This book is good for:
- People who are seeking simplicity over complexity in investing so the rest of your time can be used to do something else you like
- People who are curious and actively looking for with different better methods on investing
- People who doesn’t want or tired doing stock picking or bond picking
- People who want to get better return than most of actively managed funds
- Totally new investor, who has less to no idea on where to start in investing
So if you fit on one of the category I mentioned above, then you should highly consider reading this book.
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Book Summary: The Bogleheads’ Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk
In this book, Taylor shared so many valuable lessons about his experiences in investing that he, as well as John C Boggle and other Bogleheads’ alike are agreed and valued, here are some of them:
- You get to keep exactly what you don’t pay for (By John C. Bogle)
- Past performance does not forecast the future.
- Avoid expensive stock brokers and their hidden fees
- Buying high and selling low is a losing strategy
Taylor, in the book, also shared the Three-Fund portfolio (the main topic of this book) that are both simple as well as able to get better return that beating most of actively managed funds and their manager:
1) Total Stock Market Index
2) Total International Market Index
3) Total Bond Market Index
Originally all the Three-Fund available only on Vanguard (Investment advisor company founded by John C Bogle), now the Three-Fund also available from several major fund families. Here are few of the samples:
| Company | Total Stock Market Index | Total International Market Index | Total Bond Market Index |
|---|---|---|---|
| Vanguard | VTSMX | VGTSX | VBMFX |
| Fidelity | FSTMX | FSGDX | FBIDX |
| Schwab | SWTSX | SWISX | SWLBX |
| TIAA-CREF | TINRX | TRIEX | TBILX |
In case you prefer ETF rather than Index, here they are:
| Type | Total Stock Market ETF | Total International Market ETF | Total Bond Market ETF |
|---|---|---|---|
| ETF | VTI | VXUS | BND |
On the book, Taylor explained in detail on each of the funds and ETF, he also gave the strategy on how you can maximize their returns. On top of that, he (Taylor) also shared the Boglehead investment philosophy – one of them is encourage you to use Index Fund for investing and stay the course and avoid the temptation.
Book Review on why I read this book & you should consider reading this too
I, as someone who want a nice (and if possible early) retirement, am actively looking for a better way to invest my hard-earned money – that is to make my money to work harder than I do. While I personally don’t favor in buying index fund nor index ETF before reading the book, but rather choosing and picking my own stock and bonds – mainly aiming for much bigger return than the market return, now after reading the book and due to the fact I’m not a full time investor – such as John C Bogle himself or Warren Buffet – but rather a when-you-got-the-time-only type of investor, so I’m really considering if I really need to jump the ship to invest either Index fund or Index ETF.
The main compelling reason I get after reading the book and the reason why I am likely willing to make the jump is because the simplicity it offers so I can care-less about which stocks and bonds to pick but rather make my time to do something else I like more (such as writing this article, travelling and playing retro-games).
Where you can get & read The Bogleheads’ Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk
In case you are also interested with this book, here’s where you can get the book.
1) Amazon
Audiobook (FREE with Audible trial):
Alternative link in case you can’t see the link above: The Bogleheads’ Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk (Audiobook).
Ebook:
Alternative link in case you can’t see the link above: The Bogleheads’ Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk (eBook).
MP3 CD:
Alternative link in case you can’t see the link above: The Bogleheads’ Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk (MP3 CD).
Physical book (Hardcover):
Alternative link in case you can’t see the link above: The Bogleheads’ Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk (Hardcover).
Physical book (Paperback):
Alternative link in case you can’t see the link above: The Bogleheads’ Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk (Paperback).
If you are getting the digital copy, here’s where you can read the book:
| Android | Kindle app for Android |
| iOS | Kindle app for iOS |
| Kindle | Kindle tablet on Amazon |
| macOS | Kindle app for macOS |
| Windows | Kindle app for Windows |
Note: If you buy anything from Amazon using any of the links above, I shall earn a small commission at no extra cost charged on your purchases.
2) Local library
Head to your local library or log in to your local library app to find and rent this book.
Here’s the book ISBN number to help you search the book in library.
| ISBN-10 | 9781119487333 |
| ISBN-13 | 978-1119487333 |
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