BOOK SUMMARIES

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Book cover The Bogleheads' Guide to Investing
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Intro - The Bogleheads' Guide to Investing --:--
1. Invest for the Long Term --:--
2. Diversification is Key --:--
3. Keep Costs Low --:--
4. Understand Your Risk Tolerance --:--
5. Stay the Course --:--
6. Educate Yourself --:--
7. Have a Plan and Stick to It --:--

The Bogleheads' Guide to Investing

Mel Lindauer, Michael LeBoeuf, Taylor Larimore

25 min

Summary

The Bogleheads' Guide to Investing is a comprehensive resource that distills the investment philosophy of John Bogle, the founder of Vanguard Group, into practical advice for individual investors. The book is written in ...

Continue reading The Bogleheads' Guide to Investing is a comprehensive resource that distills the investment philosophy of John Bogle, the founder of Vanguard Group, into practical advice for individual investors. The book is written in an accessible manner, making it suitable for both novice and experienced investors. The authors, a group of dedicated Bogleheads, emphasize a straightforward, evidence-based approach to investing that prioritizes long-term growth, low costs, and diversification.

At its core, the book promotes the idea of investing for the long term. It underscores the importance of patience and discipline in achieving financial goals, encouraging readers to adopt a buy-and-hold strategy rather than attempting to time the market. The authors explain that the power of compound interest can significantly enhance investment returns over time, making a long-term perspective essential for success.

Diversification is another key concept presented in the book. The Bogleheads argue that spreading investments across different asset classes, sectors, and regions reduces risk and enhances the potential for returns. They provide practical advice on constructing a diversified portfolio using low-cost index funds and ETFs, emphasizing that a well-rounded investment strategy can help investors weather market volatility.

Cost management is a central theme throughout the book. The Bogleheads highlight the detrimental impact of high fees on investment returns and advocate for low-cost index funds as a means of maximizing gains. The authors present compelling evidence showing how even small differences in fees can lead to significant disparities in long-term wealth accumulation. By prioritizing cost-effective investment options, readers can enhance their financial outcomes.

Understanding risk tolerance is emphasized as a crucial step in the investing process. The Bogleheads encourage readers to assess their financial situation and emotional comfort with market fluctuations before making investment decisions. This understanding helps individuals align their investment strategies with their personal circumstances, ultimately leading to better decision-making and reduced anxiety during market downturns.

The book also advocates for a disciplined approach to investing, encapsulated in the mantra 'stay the course.' The Bogleheads urge investors to adhere to their investment plans, even in the face of market turbulence. By maintaining consistency and resisting emotional reactions, investors can achieve better long-term results. The authors provide strategies for staying the course, such as regular portfolio reviews and setting realistic expectations.

Education is a cornerstone of the Bogleheads philosophy, and the book encourages readers to take an active role in their financial education. By learning about investing principles and engaging with reputable resources, individuals can make informed decisions and avoid common pitfalls. The authors stress the importance of critical thinking and skepticism when evaluating investment products and advice, empowering readers to take control of their financial futures.

Finally, the Bogleheads emphasize the importance of having a well-defined investment plan. A clear plan serves as a guiding framework for investors, helping them navigate the complexities of the financial markets. The book outlines the steps to create an investment plan, including setting specific financial goals, determining asset allocation, and establishing a rebalancing strategy. By having a plan in place, investors can make more rational decisions and foster discipline in their investment approach.

In summary, The Bogleheads' Guide to Investing is a valuable resource for anyone looking to build wealth through prudent investing. By following the principles outlined in the book, readers can develop a solid foundation for their investment journey and work towards achieving their financial goals. Show less

Invest for the Long Term

The Bogleheads emphasize the importance of a long-term investment strategy. This approach is rooted in the belief that time in the market is more beneficial than timing the market. By investing consistently over a long p...

Continue reading Investing for the long term is a foundational principle that underscores the philosophy of many successful investors. The rationale behind this approach is based on the understanding that financial markets tend to increase in value over extended periods, despite short-term fluctuations and volatility. This long-term perspective allows investors to harness the power of compound interest, where the returns on investments generate their own returns over time, leading to exponential growth.

When individuals commit to a long-term investment strategy, they are encouraged to adopt a buy-and-hold philosophy. This means purchasing investments, such as stocks or index funds, and holding onto them for many years, regardless of market conditions. This strategy not only minimizes transaction costs—since buying and selling frequently can incur significant fees—but also reduces the tax burden associated with capital gains. By holding onto investments for a longer duration, investors can often qualify for lower long-term capital gains tax rates, which can lead to greater overall returns.

Moreover, this long-term mindset helps investors cultivate patience and discipline. In the face of market downturns or economic uncertainty, it can be tempting to react impulsively and sell off investments in a panic. However, a long-term strategy encourages individuals to remain steadfast, allowing them to ride out the inevitable ups and downs of the market. This resilience can significantly reduce emotional stress, as investors are less likely to be swayed by short-term news cycles or market sentiment.

The emphasis on long-term investing is also closely linked to the preference for index funds over actively managed funds. Research has consistently shown that, over long periods, index funds tend to outperform their actively managed counterparts. This is largely due to lower fees associated with index funds, as they simply aim to replicate the performance of a market index rather than trying to beat it through active trading. By investing in index funds, individuals can gain broad market exposure while minimizing costs, further enhancing their potential for growth over time.

Additionally, focusing on long-term goals helps investors set realistic expectations. Rather than seeking quick gains, which can lead to disappointment and poor decision-making, long-term investors are encouraged to define clear financial objectives—such as retirement savings or funding a child's education. This clarity allows for more strategic planning and can lead to a more structured investment approach.

In summary, investing for the long term is about more than just the potential for financial growth; it embodies a mindset that values stability, patience, and strategic planning. By embracing this philosophy, investors can navigate the complexities of the financial markets with greater confidence, ultimately leading to a more secure and prosperous financial future. Show less

Diversification is Key

Diversification is one of the core principles discussed in the book. The Bogleheads advocate for spreading investments across various asset classes, sectors, and geographic regions to reduce risk. By diversifying, invest...

Continue reading Diversification is a fundamental strategy in the realm of investing that aims to reduce risk while optimizing potential returns. The principle of diversification revolves around the idea that by spreading investments across a variety of asset classes, sectors, and geographic regions, an investor can safeguard their portfolio against the adverse effects of any single investment's poor performance.

When an investor concentrates their funds in a limited number of assets, they expose themselves to significant risk. If one of those investments performs poorly, it can lead to substantial losses that could have been mitigated through diversification. By holding a diverse array of investments, the negative impact of a poor-performing asset can be offset by the stability or growth of others. This is particularly important in volatile markets, where certain sectors may experience downturns while others thrive.

The guidance provided emphasizes the use of low-cost index funds and exchange-traded funds (ETFs) as effective vehicles for achieving diversification. These investment products inherently contain a variety of stocks or bonds, which allows investors to gain exposure to a broad market segment without the need to select individual securities. This approach not only simplifies the investment process but also minimizes costs, as index funds typically have lower fees compared to actively managed funds.

Asset allocation is a critical aspect of diversification, referring to the strategic distribution of investments among different asset categories, such as stocks, bonds, and cash. The appropriate asset allocation is determined by an individual's risk tolerance, investment horizon, and financial goals. For instance, younger investors with a longer time frame may opt for a higher proportion of stocks to capitalize on growth potential, while those nearing retirement might favor bonds for their stability and income generation.

The authors illustrate that while individual stocks can exhibit significant volatility, a well-constructed diversified portfolio tends to produce smoother returns over time. This smoothing effect occurs because the performance of various assets often does not move in tandem; when some investments decline, others may rise, thereby balancing overall performance.

Furthermore, diversification can enhance returns by capturing growth opportunities across different segments of the market. By investing in various sectors—such as technology, healthcare, consumer goods, and international markets—investors can take advantage of the unique growth dynamics that each area offers. This strategic exposure to multiple growth drivers can lead to a more resilient investment portfolio that is better positioned to weather market fluctuations.

In summary, the emphasis on diversification as a key investment strategy serves as a protective measure against risk while simultaneously providing opportunities for growth. By understanding and implementing the principles of asset allocation and utilizing low-cost investment vehicles, investors can create a robust portfolio that aligns with their financial objectives and risk tolerance. Show less

Keep Costs Low

One of the fundamental tenets of the Bogleheads philosophy is to minimize investment costs. High fees associated with actively managed funds can erode investment returns over time. The book highlights the importance of c...

Continue reading One of the core principles emphasized is the necessity of keeping investment costs low, which is crucial for enhancing overall returns. The philosophy asserts that high fees associated with actively managed funds can significantly detract from an investor’s potential growth. This is particularly important because investment returns are often compounded over time; therefore, even a small percentage difference in fees can lead to substantial discrepancies in the final value of an investment portfolio after many years.

The discussion around low-cost index funds and exchange-traded funds (ETFs) is pivotal. These investment vehicles typically have lower expense ratios compared to actively managed funds, which often charge higher management fees due to the costs associated with research, trading, and operational overhead. The authors illustrate through various calculations how, for instance, a fund charging a 1% fee versus one charging 0.2% can result in tens or even hundreds of thousands of dollars difference in returns over a multi-decade investment horizon. This highlights the compounding effect of fees, where lower costs lead to a greater accumulation of wealth over time.

Moreover, the text delves into the importance of being vigilant about not just management fees but also trading costs. Frequent trading can lead to increased costs that can chip away at returns. Therefore, a buy-and-hold strategy is often recommended, as it minimizes trading activity and associated costs. This strategy aligns with the broader philosophy of long-term investing, which focuses on the overall growth of investments rather than short-term market fluctuations.

In addition to management and trading costs, tax implications are also addressed extensively. The authors advocate for tax-efficient investing strategies, emphasizing the advantages of utilizing tax-advantaged accounts like IRAs and 401(k)s. By holding investments in these accounts, investors can defer taxes on gains, which can substantially enhance growth over time. The text encourages investors to be strategic about asset placement, suggesting that more tax-efficient investments, such as index funds, be held in taxable accounts, while those with less favorable tax treatment, like bonds, be allocated to tax-advantaged accounts.

Ultimately, the overarching message is that by focusing on minimizing costs—whether through choosing low-fee investment options, reducing trading activity, or optimizing for tax efficiency—investors can significantly improve their chances of achieving their financial objectives. This principle serves as a cornerstone for building a successful investment strategy that emphasizes long-term growth and sustainability. Show less

Understand Your Risk Tolerance

The Bogleheads stress the importance of understanding one's risk tolerance before making investment decisions. Risk tolerance is the degree of variability in investment returns that an individual is willing to withstand....

Continue reading Understanding risk tolerance is a fundamental concept in the realm of investing, and it serves as a cornerstone for making sound investment decisions. The emphasis on grasping one's risk tolerance stems from the recognition that every investor has a unique set of circumstances, preferences, and psychological predispositions that influence their approach to risk.

Risk tolerance can be defined as the degree of variability in investment returns that an individual is willing to endure. This encompasses not only the financial implications of market fluctuations but also the emotional and psychological responses that can arise during periods of volatility. The authors highlight that risk tolerance is not a static measure; it can evolve over time based on changes in personal circumstances, market conditions, and life stages.

To effectively assess risk tolerance, investors are encouraged to conduct a thorough evaluation of their financial situation. This includes an analysis of their income, expenses, savings, and investment goals. By understanding their current financial standing, investors can better determine how much risk they can afford to take without jeopardizing their financial security.

Investment goals play a critical role in shaping risk tolerance as well. For instance, an investor saving for a long-term goal, such as retirement, may have a higher risk tolerance compared to someone saving for a short-term objective, like a home purchase. The time horizon associated with an investment is crucial; longer time frames typically allow for greater risk-taking, as there is more time to recover from potential market downturns.

Emotional comfort with market fluctuations is another vital aspect of risk tolerance. The authors encourage readers to reflect on their past experiences with investing and how they reacted to market swings. Understanding one's emotional responses can provide insights into how one might behave in future market conditions. For example, an investor who panics during market declines may need to adopt a more conservative investment strategy to avoid making impulsive decisions that could harm their financial goals.

To aid in evaluating risk tolerance, the authors provide various tools and frameworks, including questionnaires designed to gauge an individual's comfort level with risk. These assessments often include questions about investment preferences, reactions to hypothetical market scenarios, and overall financial outlook. Additionally, discussions on the psychological aspects of investing are woven throughout the narrative, emphasizing the importance of self-awareness in the investment process.

Ultimately, aligning investment strategies with an individual's risk tolerance is essential for maintaining focus during market fluctuations. When investors have a clear understanding of their risk profile, they are less likely to engage in panic selling during downturns, allowing them to stay committed to their long-term investment objectives. This alignment fosters a disciplined approach to investing, reducing the likelihood of emotional decision-making that can lead to suboptimal financial outcomes.

In summary, grasping risk tolerance is not merely about understanding the numbers; it involves a holistic view of one's financial situation, emotional responses, and investment goals. By thoroughly assessing these elements, investors can make informed decisions about asset allocation and select investment choices that align with their personal circumstances, ultimately leading to a more successful and less stressful investing experience. Show less

Stay the Course

The Bogleheads advocate for a disciplined approach to investing, encapsulated in the mantra 'stay the course.' This idea emphasizes the importance of sticking to your investment plan, even during turbulent market conditi...

Continue reading The concept of maintaining a disciplined approach to investing is central to the philosophy presented in the text. The principle of "staying the course" serves as a reminder that investing is a long-term endeavor, often fraught with volatility and uncertainty. During periods of market turbulence, it is common for investors to experience heightened emotions, which can lead to impulsive decisions. Such reactions might include selling off investments in a panic during a market downturn or chasing after the latest hot stock during a market upswing. These emotional responses often result in suboptimal investment outcomes, as they can disrupt a carefully crafted investment strategy.

To counteract this tendency, the authors advocate for a consistent investment plan that is aligned with one’s personal financial goals and risk tolerance. This plan should be well-defined and should take into account the investor's time horizon, financial objectives, and individual circumstances. By having a clear framework in place, investors are better equipped to navigate the inevitable ups and downs of the market without succumbing to emotional decision-making.

Regular portfolio reviews are emphasized as a crucial component of staying the course. These reviews allow investors to assess their portfolio’s performance in relation to their goals and make necessary adjustments without making hasty decisions based on short-term market fluctuations. Rebalancing is another key strategy discussed; it involves periodically adjusting the proportions of different asset classes in a portfolio to maintain the desired risk level. This practice helps ensure that an investor does not become overly exposed to a particular asset class due to market performance, which could lead to increased risk.

Setting realistic expectations is also highlighted as an important aspect of staying the course. Investors should have a clear understanding of the potential risks and rewards associated with their investments. By establishing achievable performance targets and acknowledging that market conditions can vary significantly over time, investors can better manage their expectations and reduce the likelihood of making emotional decisions during periods of market stress.

Ultimately, the philosophy encourages investors to focus on the long-term growth potential of their investments, rather than getting caught up in the daily fluctuations of the market. By committing to a disciplined investment strategy, regularly reviewing their portfolio, and maintaining realistic expectations, investors can enhance their chances of achieving their financial goals while minimizing the impact of emotional decision-making. This approach fosters resilience and a sense of control over one’s financial future, even in the face of market volatility. Show less

Educate Yourself

Education is a cornerstone of the Bogleheads philosophy. The book encourages readers to take an active role in their financial education by learning about investing principles, financial markets, and personal finance. Th...

Continue reading Education is fundamentally positioned as a cornerstone within the investment philosophy advocated by the authors. The emphasis on self-education reflects a belief that informed investors are better equipped to navigate the complexities of financial markets and personal finance. The narrative encourages individuals to actively engage in their own financial education rather than relying solely on advisors or external sources. This proactive approach is seen as essential for developing a robust understanding of key investing principles.

The authors provide a diverse array of resources to facilitate this educational journey. They recommend specific books that cover various aspects of investing, from foundational concepts to advanced strategies. These texts serve as a guide for readers to explore different viewpoints and methodologies within the investment landscape. Additionally, they point to reputable websites that offer valuable insights, tools, and data which can enhance an investor's knowledge base. Online forums are also highlighted as platforms where investors can connect with like-minded individuals, share experiences, and discuss strategies. This community aspect fosters a collaborative learning environment where questions can be posed, and diverse perspectives can be exchanged.

The importance of critical thinking is underscored throughout this educational endeavor. Investors are encouraged to approach investment products and advice with a healthy dose of skepticism. This critical lens is vital for discerning between sound investment strategies and those that may be misleading or overly complex. By cultivating a mindset that questions the status quo, investors can better evaluate the merits of various investment options and avoid common pitfalls that often lead to financial losses.

Furthermore, the knowledge gained through self-education empowers investors to take control of their financial futures. It enables them to make informed decisions that align with their personal financial goals, risk tolerance, and investment horizon. This empowerment is crucial in a landscape where information is abundant but can be overwhelming or contradictory. By arming themselves with knowledge, investors can confidently navigate their investment journeys, build wealth over time, and ultimately achieve greater financial independence.

In essence, the philosophy surrounding education in this context is not merely about acquiring facts or figures. It is about fostering a comprehensive understanding of the investment world that allows individuals to engage actively with their financial destinies. The authors advocate for a lifelong commitment to learning, suggesting that the investment landscape is ever-evolving, and staying informed is key to long-term success. This holistic approach to education is viewed as a vital tool for anyone looking to achieve financial stability and growth through prudent investing practices. Show less

Have a Plan and Stick to It

The Bogleheads stress the importance of having a well-defined investment plan that outlines individual goals, risk tolerance, and asset allocation. A clear plan serves as a roadmap for investors, helping them navigate th...

Continue reading Having a well-defined investment plan is essential for anyone looking to navigate the often turbulent waters of financial markets. The importance of a structured approach cannot be overstated, as it serves not only as a guide but also as a stabilizing force in times of uncertainty. A comprehensive investment plan begins with clearly articulated financial goals. These goals should be specific, measurable, achievable, relevant, and time-bound (often referred to as SMART criteria). For instance, an investor might aim to save a certain amount for retirement by a specific age or to accumulate funds for a child's education within a defined timeframe.

Understanding one's risk tolerance is another crucial element of this planning process. Risk tolerance refers to an individual's ability and willingness to endure fluctuations in their investment's value. This can vary significantly from one person to another, influenced by factors such as age, financial situation, investment experience, and psychological disposition. By accurately assessing risk tolerance, investors can make informed decisions about the types of investments that align with their comfort levels and long-term objectives.

Asset allocation is a cornerstone of the investment plan. It involves distributing investments across various asset classes, such as stocks, bonds, and cash equivalents, to create a diversified portfolio. This diversification helps mitigate risk since different asset classes often perform differently under varying market conditions. The book emphasizes that a well-thought-out asset allocation strategy should reflect both individual goals and risk tolerance. For example, a younger investor might favor a higher allocation to stocks, which typically offer greater growth potential but come with higher volatility, while someone closer to retirement might prioritize bonds for their stability and income generation.

An equally important aspect of having a plan is establishing a rebalancing strategy. Over time, the performance of different asset classes can cause an investor's portfolio to drift from its intended asset allocation. For instance, if stocks perform exceptionally well, they may comprise a larger percentage of the portfolio than originally planned, increasing the overall risk. Rebalancing involves periodically adjusting the portfolio back to its target allocation, which can be done on a set schedule (e.g., annually) or when allocations deviate significantly from the target. This practice not only maintains the desired risk level but also encourages disciplined investing by preventing emotional decision-making during market highs and lows.

Regular review and updates to the investment plan are vital to ensure it remains aligned with an investor's evolving circumstances and the changing market landscape. Life events such as marriage, the birth of a child, career changes, or nearing retirement can all necessitate adjustments to financial goals and risk tolerance. Additionally, market conditions can shift, influencing the performance outlook of various asset classes. By proactively reviewing and revising the investment plan, investors can stay on track toward their goals and adapt to new challenges or opportunities.

In summary, having a well-defined investment plan is not merely a recommendation but a fundamental principle of sound investing. It provides a structured approach that helps investors make rational decisions, maintain discipline, and ultimately achieve long-term financial success. By clearly outlining goals, assessing risk tolerance, determining asset allocation, implementing a rebalancing strategy, and committing to regular reviews, investors can navigate the complexities of the financial markets with confidence and clarity. Show less

The 7 Key Ideas of the Book

Who Should Read This Book?

This book is ideal for individual investors of all experience levels, from beginners seeking to understand the basics of investing to more experienced investors looking for a disciplined, evidence-based approach to wealth accumulation. It is particularly beneficial for those who prefer a straightforward, no-nonsense philosophy that prioritizes long-term growth and cost-effective strategies.

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About the Authors

Mel Lindauer

Mel Lindauer is a prominent figure in the field of personal finance and investing, best known for his contributions to the development of investment strategies that emphasize low-cost index funds. He is recognized for his advocacy of passive investing, which aims to achieve market returns through a diversified portfolio rather than attempting to outperform the market through active trading.

Lindauer is also a co-author of the influential book "The Bogleheads' Guide to Investing," which serves as a practical resource for individual investors seeking to build wealth through sound financial principles. The book reflects the investment philosophy of John C. Bogle, the founder of Vanguard Group, and emphasizes the importance of simplicity, discipline, and long-term planning in personal finance.

In addition to his writing, Mel Lindauer is an active participant in the financial community, often engaging with investors through various platforms, including blogs and forums. He is known for his clear communication style and commitment to educating others about effective investment strategies.

Overall, Mel Lindauer's work has had a significant impact on the way individuals approach investing, promoting a philosophy that prioritizes financial literacy and responsible management of personal wealth. His contributions continue to resonate with both novice and experienced investors alike.

Michael LeBoeuf

Michael LeBoeuf is an American author and business consultant known for his work in the fields of personal development and business management. He gained prominence for his insights into effective management practices and the principles of success. LeBoeuf is particularly recognized for his book "How to Win Customers and Keep Them for Life," which provides strategies for enhancing customer relationships and improving business performance.

In addition to his writing, LeBoeuf has contributed to the field of personal development through seminars and workshops, where he shares his expertise on motivation, goal setting, and achieving personal and professional success. His approach often emphasizes the importance of customer service and the role it plays in sustaining business growth.

LeBoeuf's work has resonated with a wide audience, including entrepreneurs, business leaders, and individuals seeking to improve their personal effectiveness. His practical advice and straightforward writing style have made his books accessible to a broad readership.

While specific details about his early life and career trajectory may not be widely documented, Michael LeBoeuf remains a respected figure in the realms of business and personal development, with a focus on helping others achieve their goals through effective strategies and customer-centric practices.

Taylor Larimore

Taylor Larimore is an influential figure in the realm of personal finance and investing, best known for his advocacy of low-cost index fund investing. He is a co-author of "The Bogleheads' Guide to Investing," a book that emphasizes the principles of investing popularized by John C. Bogle, the founder of Vanguard Group. Larimore's work focuses on educating individuals about the benefits of passive investing strategies and the importance of financial literacy.

In addition to his writing, Larimore is a prominent member of the Bogleheads community, a group of investors who share a philosophy of investing based on Bogle's teachings. This community is known for its commitment to helping individuals achieve financial independence through sound investment practices.

Larimore's insights and strategies have made a significant impact on both novice and experienced investors, promoting a straightforward approach to wealth building that prioritizes long-term growth over speculative trading. His contributions to the field of personal finance continue to resonate with those seeking to improve their financial well-being through informed decision-making and disciplined investing.

The Bogleheads' Guide to Investing FAQs

How long does it take to read The Bogleheads' Guide to Investing?

The reading time for The Bogleheads' Guide to Investing depends on the reader's pace. However, this concise book summary covers the 7 key ideas from The Bogleheads' Guide to Investing, allowing you to quickly understand the main concepts, insights, and practical applications in around 25 min.

Is The Bogleheads' Guide to Investing a good book? Is it worth reading?

The Bogleheads' Guide to Investing is definitely worth reading. The book covers essential topics including Invest for the Long Term, Diversification is Key, Keep Costs Low, providing practical insights and actionable advice. Whether you read the full book or our concise summary, The Bogleheads' Guide to Investing delivers valuable knowledge that can help you improve your understanding and apply these concepts in your personal or professional life.

Who is the author of The Bogleheads' Guide to Investing?

The Bogleheads' Guide to Investing was written by Mel Lindauer, Michael LeBoeuf, Taylor Larimore.

What to read after The Bogleheads' Guide to Investing?

If you enjoyed The Bogleheads' Guide to Investing by Mel Lindauer, Michael LeBoeuf, Taylor Larimore and want to explore similar topics or deepen your understanding, we highly recommend these related book summaries:

  • A Random Walk Down Wall Street by Burton Gordon Malkiel
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  • The Automatic Millionaire by David Bach
  • Goals-Based Investing by Tony Davidow

These books cover related themes, complementary concepts, and will help you build upon the knowledge gained from The Bogleheads' Guide to Investing. Each of these summaries provides concise insights that can further enhance your understanding and practical application of the ideas presented in The Bogleheads' Guide to Investing.