Bogle's "The Clash of the Cultures" is another recommendation from the 2012 shareholder letter.
In it, Bogle — creator of the index fund and founder of the Vanguard Group, now managing $2.0 trillion in assets — argues that long-term investing has been crowded out by short-term speculation.
But the book isn't all argument. It finishes with practical tips, like:
1. Remember reversion to the mean. What's hot today isn't likely to be hot tomorrow. The stock market reverts to fundamental returns over the long run. Don't follow the herd.
2. Time is your friend, impulse is your enemy. Take advantage of compound interest and don't be captivated by the siren song of the market. That only seduces you into buying after stocks have soared and selling after they plunge.