Top positive review
Another Jack Bogle classic book
Reviewed in the United States on September 8, 2012
I was already a life-long fan of Jack Bogle and his low-cost index funds. I have probably read about 4 of his previous books. Since I was already familiar with Jack's work, there were few surprises for me in this book.
As William Bernstein pointed out in his review, the large Wall Street investment firms have been a failure in terms of helping the average investor achieve his financial goals. Billions, yes billions of dollars are paid out in Wall Street bonuses every year, primarily for figuring out how to sell people and firms investments they should not buy. Just read a few books by people that worked on wall street for a few years...and you will get the idea. Many firms are legally bound not to buy investments that have too high of credit risk. Wall Street employees spend their time figuring out how to get poor investments rated as excellent so they can sell them.
Someone recently pointed out the only innovation from Wall Street or the big banks in the last 25 years that has actually helped investors is the ATM. I would argue that Jack Bogle inventing the index fund was the best thing that happened to investors in the 20th century.
If you have not read any of Jack Bogle's books, this is a good one to read. I found it encouraging that index fund stock investing now is about 28% of all money invested in stock mutual funds. Hopefully this percentage continues to trend higher as people figure out that Wall Street is not your friend.