john C. Bogle wrote the book "Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor".

The following is my favorite part:

Favorite part 1:

"In a sense, the mutual fund industry was established by witchcraft."

Favorite part 2:

"For ordinary investors, index funds are the most unlikely heroes. It is just a widely diversified portfolio, usually running at the lowest cost, without the recognized benefits of a smart, resourceful and skilled portfolio manager. Index funds only buy and hold securities in a specific index, and are proportional to their weight in the index. Our philosophy is simple and clear. "

Favorite part 3:

"The idea that when investors should enter or exit the market will be signaled by the bell is simply not credible. After nearly 5 years in this business, I don't know anyone who can always succeed in doing this. I don't even know who knows who can successfully insist on doing this. "

Favorite part 4:

"The most famous stars are of course those funds that have been rated as five-star by Morningstar * * *."

Favorite part 5:

"In the beginning, investment is an act of faith, a willingness to postpone current consumption and save for the future."

Favorite part 6:

"Another huge loss is taxes. In view of the low turnover implied by the structure of the Standard & Poor's 5 Index (and, to a greater extent, the Wilshire 5 Index of the whole market), passively managed index funds are tax efficient. "

favorite part 7:

so please don't forget that considering the probability of future returns is only the beginning of making a decision. The consequences of the decision. If a serious misjudgment of future returns will endanger your future financial situation, then you should be conservative.

favorite part 8:

When sailing in the financial market, long-term investors must keep in mind the four basic dimensions of long-term return-return, risk, cost and time-and must apply them to each asset class. Never forget that these four dimensions are very interdependent. "

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