The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns

Imagine sitting in a cozy armchair, the soft glow of an old lamp illuminating a book in your lap. The world outside may be noisy, but here, you discover the wisdom of simplicity. The essence of investing, as revealed in this gentle story, is that the simplest path is often the most rewarding.

It begins with a parable—a family called the Gotrocks, who own all the businesses in the land. Their wealth grows steadily, compounding year after year, until one day, they are visited by helpers. These helpers—brokers, managers, consultants—promise to help them grow even richer. But with every transaction, every piece of advice, a small slice of the family's wealth is taken away. Over generations, what was once a fortune is slowly eroded, not by misfortune or calamity, but by the quiet, persistent nibbling of costs.

This story is not just a fable; it is the reality for millions of investors who chase hot tips, switch funds, or pay high fees in search of outperformance. But the truth is, for every winner in the market, there must be a loser—before costs, it's a zero-sum game. After costs, the odds tip further against you. The market, with all its noise and excitement, becomes a distraction from what truly matters: owning a piece of every business, letting the power of compounding work quietly in your favor.

There's a kind of peace in this realization. You don't need to be smarter, faster, or luckier than everyone else. You only need to own the whole market, keep your costs low, and let time do its work. This is the wisdom that underpins the index fund revolution—a revolution that was once laughed at, but now stands as a pillar of personal finance.

As we turn the page, remember: in a world obsessed with complexity, simplicity is your greatest ally. Next, we'll explore how the silent force of costs can either build your fortune or quietly steal it away.