Common Sense Investing

John Bogle is the founder and former CEO of Vanguard Mutual Fund Group. It is among the largest fund managers in the world.

Here is the foreward to his book on Common Sense Investing:

Investing is all about common sense. Owning a diversified portfolio of stocks and holding it for the long term is a winner's game. Try to beat the stock market is theretically a zero-sum game (for every winner, there must be a loser) and after the substantial costs of investing all deducted, it becomes a loser's game.

Common sense tell us - and history confirms - that the simplest and most efficient investment strategy is to buy and hold all of the nation's publicly held businesses at very low cost. The classic index fund that owns this market portfolio is the only investment that guarantees you with your fair shre of stock market returns.

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In my words: invest in a large, well diversified, low cost fund.