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The Little Book of Common Sense Investing PDF Book by John C. Bogle

Every share of stock in the United States was owned by a wealthy family by the name of the Gotrocks, which had multiplied over the years to include thousands of brothers, sisters, aunts, uncles, and cousins. They reaped the benefits of investing every year, including all of the earnings growth and dividend payments made by those thousands of firms.

There was harmony across the family since each member’s wealth increased at the same rate. Over the years, their investment accumulated, resulting in immense fortune. The Gotrocks family was engaged in a contest of skill. However, a few quick-witted Helpers soon show up and convince some “clever” Gotrocks cousins that they can get a bigger portion than their family. These Helpers persuade the cousins to sell other family members stakes in some of the businesses in exchange for buying shares in other businesses from them.

The transactions are handled by the Helpers, who function as brokers and are compensated with commissions. As a result, the ownership is divided among the family members. But to their astonishment, the family’s fortune starts to increase more slowly. Why? The family’s portion of the generous pie that American industry bakes each year, with all of those dividends paid and all of those revenues reinvested in the firms 100% from the onset, begins to diminish simply because some of the return is now being consumed by the Helpers.

PDF Name: The Little Book of Common Sense Investing PDF Book
No. of Pages: 305
PDF Size: 2 MB
Language: English

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