VOL. XCIV, NO. 247
BOOK BREAKDOWN
NO ADVICE
Saturday, January 17, 2026
Beginner · 2014
The Bogleheads' Guide to Investing
by Taylor Larimore, Mel Lindauer, Michael LeBoeuf · Partly Dated
A practical, evidence-based playbook for building wealth the Boglehead way: save more, buy diversified low-cost index funds, set an asset allocation you can stick with, minimize taxes/fees, rebalance, and ignore market noise.
Level
Beginner
Strategies
3 types
Frameworks
6 frameworks
Rating
Target Audience
Ideal Reader
- Anyone who wants a simple, low-maintenance investing system that works for decades
- Index-fund investors who want a complete plan (lifestyle -> saving -> portfolio -> behavior -> retirement)
- People prone to performance chasing or market timing who want guardrails
- Investors optimizing costs, taxes, and account choices (401k/IRA-style planning)
May Not Suit
- Investors looking for stock-picking tactics, valuation deep dives, or trading systems
- People who want complex portfolio engineering (alts, derivatives, heavy quant) as the default
- Anyone unwilling to accept boring but effective as the point
Investor Fit
| Strategy | Portfolio Management · Behavioral Finance · Quantitative |
| Time Horizon | Long-term (5+ years) |
| Asset Focus | Equities · Fixed Income · Multi-Asset |
| Math Level | Basic Arithmetic |
| Prerequisites | Basic understanding of stocks vs bonds · Comfort with simple percentages and compounding |
Key Learnings
- 1Your savings rate and financial lifestyle matter at least as much as investments
- 2Start early and invest regularly; consistency beats cleverness
- 3Keep it simple: broad diversification with low-cost funds is a durable edge
- 4Asset allocation is the main risk/return lever; pick one you can hold through crashes
- 5Costs matter (expense ratios, loads, turnover, advisor fees) and compound against you
- 6Taxes matter; reduce tax drag with smart account use and fund placement
- 7Diversification reduces uncompensated risk; do not make single-idea bets your foundation
- 8Performance chasing and market timing are usually hazardous to long-term results
- 9Rebalancing is a disciplined way to control risk and fight emotion
- 10Tune out the noise; your behavior is a major determinant of outcomes
- 11Have a plan for windfalls, retirement withdrawals, insurance, and estate basics
Frameworks (6)
Formulas (4)
Case Studies (4)
High-fee active funds vs low-cost index funds
Takeaway
Fees are a structural advantage for the low-cost investor; you do not need forecasting to win that battle.
Performance chasing and market timing
Takeaway
Switching based on recent returns often locks in buying high and selling low.
Tax-inefficient assets in taxable accounts
Takeaway
Taxes can be reduced with sensible account placement and low-turnover funds - more return you can actually keep.
Rebalance after a major drawdown
Takeaway
A written rebalance rule turns fear into action and keeps risk aligned with your plan.
Mental Models
- —Stay the course as a competitive advantage
- —Costs are certain; returns are uncertain
- —Simplicity is a feature (reduces errors and increases stickiness)
- —Asset allocation is strategy; funds are implementation
- —Behavioral risk (panic, FOMO) is often bigger than market risk
- —Time in the market > timing the market
- —A good plan is one you can follow when it feels hardest
Key Terms
No glossary terms documented for this book.
Limitations & Caveats
Keep in mind
- •Some content is U.S.-centric (tax laws, retirement accounts, estate details); rules evolve over time
- •Not intended for advanced active management, security selection, or derivatives
- •A strict low-cost index approach may feel too conservative for investors seeking specialized tilts or alternatives
- •Behavioral discipline is assumed; without it, any plan fails
Related Tools
Reading Guide
Priority Reading
- Keep it simple
- Asset allocation
- Costs matter
- Taxes
- Diversification
- Performance chasing and market timing
- Rebalancing and tuning out the noise
- Mastering your emotions
Optional Sections
- —Detailed account/tax specifics if they do not apply to your country (keep the principles)
- —Insurance/estate chapters if you already have professional planning (still worth a scan)
Ratings
Concept Tags
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