Investing Basics: Common Sense Investing and Beyond

Breni's Intelligent Investor path teaches investing basics through three classic books. There are 3 courses: The Little Book of Common Sense Investing by John Bogle, The Intelligent Investor by Benjamin Graham, and A Random Walk Down Wall Street by Burton Malkiel. Bogle explains low-cost index funds, Graham explains margin of safety and Mr. Market, and Malkiel explains why markets are hard to beat. It is education, not financial advice.

  • 3 courses
  • 34 learning objectives
  • Level: beginner
  • Language: English
  • Price: Subscription, free trial

What you will be able to do

  • Explain what an index fund is and why costs matter
  • Work out how fees reduce returns over time
  • Tell investing from speculating
  • Use Mr. Market and margin of safety to think about prices
  • Explain diversification and dollar cost averaging

Full curriculum

Part 1 · Owning the market

1. The Little Book of Common Sense Investing by John Bogle: Own the Whole Market

Explain index funds and why low costs matter over decades. Units, in order: Owning the whole market with an index fund; How costs eat returns; Expense ratios and fees; Why most active funds trail the index; John Bogle and Vanguard.

  • — Owning the Whole Market
    Learn how index funds buy all stocks to match market returns.
    • What Are Index Funds
    • Mirroring Market Indexes
    • Buying All Public Businesses
  • — How Costs Eat Returns
    Understand how fees and expenses destroy long-term investment returns.
    • Compounding Costs
    • The Losers Game
  • — Expense Ratios and Fees
    Explore expense ratios, operating costs, and fund fees.
    • What Is an Expense Ratio
    • Calculating Expense Ratios
    • Components of Fees
  • — Why Active Funds Trail
    Discover why most active fund managers fail to beat the market.
    • Active vs Passive Funds
    • Active Managers Fail
    • Low Fees Win
  • — John Bogle and Vanguard
    Meet John Bogle and learn how he created Vanguard and index funds.
    • Founding Vanguard
    • The First Index Fund
    • Investment Philosophy

Part 2 · Thinking about prices

2. The Intelligent Investor by Benjamin Graham: Invest With a Margin of Safety

Use Graham's ideas to invest calmly and avoid overpaying. Units, in order: Investing versus speculating; Defensive and enterprising investors; Mr. Market; Margin of safety; Value investing today.

  • — Investing Versus Speculating
    Learn the core difference between safe investing and risky speculation.
    • Define an investment operation
    • Spot market speculation
  • — Defensive and Enterprising Investors
    Choose between a passive defensive style and an active enterprising style.
    • The defensive investor
    • The enterprising investor
  • — The Parable of Mr. Market
    Use the Mr. Market allegory to handle daily price swings calmly.
    • Meet Mr. Market
    • Ignore market moods
  • — The Margin of Safety
    Protect your money by buying well below intrinsic value.
    • The margin of safety
    • Render prediction unnecessary
  • — Value Investing Today
    Determine company value and apply timeless principles today.
    • Determine company value
    • Timeless value principles

3. A Random Walk Down Wall Street by Burton Malkiel: Why Markets Are Hard to Beat

Explain why prices are hard to predict and how to invest anyway. Units, in order: The random walk idea; The efficient market hypothesis; Bubbles and manias; Diversification; Dollar cost averaging.

  • — The Random Walk Idea
    Learn why stock prices move randomly and defy easy prediction.
    • What is a random walk
    • Testing market randomness
  • — Efficient Market Hypothesis
    Explore how markets quickly reflect all available information into asset prices.
    • Core efficient market idea
    • Testing market efficiency
  • — Bubbles and Manias
    Examine historical bubbles and crashes that challenge strict market theories.
    • Market bubbles and crashes
    • Behavioral finance limits
  • — Portfolio Diversification
    Reduce investment risk by spreading capital across multiple different assets.
    • The basics of diversification
    • Measuring portfolio variance
  • — Dollar-Cost Averaging
    Invest fixed amounts regularly to buy more shares when prices drop.
    • What is dollar-cost averaging
    • Benefits and common confusions

Sample: The Little Book of Common Sense Investing by John Bogle: Own the Whole Market

The opening tier, (Owning the Whole Market). Learn how index funds buy all stocks to match market returns.

What Are Index Funds

Index funds mirror the performance of market benchmarks like the S&P 500.

Mirroring Market Indexes

They invest in the same assets using the same weights as indexes.

Buying All Public Businesses

Buy and hold all publicly held businesses at a very low cost.

Questions about Investing Basics: Common Sense Investing and Beyond

What is an index fund?

An index fund holds all or a sample of the shares in a market index, such as the S&P 500, so it tracks the market instead of trying to beat it. Costs are usually low.

What is margin of safety?

Benjamin Graham's margin of safety means buying only when the price is well below your estimate of value, so mistakes in the estimate do less harm.

Is this financial advice?

No. The path is education about ideas in these books, not financial advice. Speak to a licensed adviser about your own situation.

Is Breni affiliated with the authors?

No. Breni is not affiliated with the estates of John Bogle or Benjamin Graham, Burton Malkiel or their publishers.

Do I get a certificate?

Yes, finishing all 3 courses earns a Breni certificate of completion.

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