Common Sense on Mutual Funds, Updated 10th Anniversary Edition

Foreword for the 10th Anniversary Edition ix

Foreword for the Original Edition xiii

Preface to the 10th Anniversary Edition xv

Preface to the Original Edition xix

Acknowledgments for the 10th Anniversary Edition xxvii

Acknowledgments for the Original Edition xxix

About the Author xxxi

Part I: On Investment Strategy 1

Chapter 1 On Long-Term Investing 3

Chance and the Garden

Chapter 2 On the Nature of Returns 45

Occam’s Razor

Chapter 3 On Asset Allocation 77

The Riddle of Performance Attribution

Chapter 4 On Simplicity 109

How to Come Down to Where You Ought to Be

Part II: On Investment Choices 143

Chapter 5 On Indexing 145

The Triumph of Experience over Hope

Chapter 6 On Equity Styles 191

Tick-Tack-Toe

Chapter 7 On Bonds 217

Treadmill to Oblivion?

Chapter 8 On Global Investing 251

Acres of Diamonds

Chapter 9 On Selecting Superior Funds 277

The Search for the Holy Grail

Part III: On Investment Performance 303

Chapter 10 On Reversion to the Mean 305

Sir Isaac Newton’s Revenge on Wall Street

Chapter 11 On Investment Relativism 329

Happiness or Misery?

Chapter 12 On Asset Size 347

Nothing Fails Like Success

Chapter 13 On Taxes 373

The Message of the Parallax

Chapter 14 On Time 401

The Fourth Dimension—Magic or Tyranny?

Part IV: On Fund Management 423

Chapter 15 On Principles 425

Important Principles Must Be Inflexible

Chapter 16 On Marketing 445

The Message Is the Medium

Chapter 17 On Technology 465

To What Avail?

Chapter 18 On Directors 483

Serving Two Masters

Chapter 19 On Structure 503

The Strategic Imperative

Part V: On Spirit 533

Chapter 20 On Entrepreneurship 535

The Joy of Creating

Chapter 21 On Leadership 549

A Sense of Purpose

Chapter 22 On Human Beings 567

Clients and Crew

Afterword 585

Appendix I Some Thoughts about the Current Stock Market as 2010 Begins 591

Appendix II Some Thoughts about the Current Stock Market as 1999 Begins 599

Notes 607

Index 613