common-sense-index-investing-bogle

Name: common-sense-index-investing-bogle
Author: simbajigege

17installs21forks

How to install common-sense-index-investing-bogle?

simbajigege/book2skills/common-sense-index-investing-bogle

$npx -y skills add simbajigege/book2skills --skill common-sense-index-investing-bogle

Installs into the current project.

Summary

Apply John Bogle index investing rules for low-cost funds, asset allocation,

Files · 1

View on GitHub

SKILL.md

1	# The Little Book of Common Sense Investing — Index Investing Skill
2
3	Knowledge source: The Little Book of Common Sense Investing by John C. Bogle.
4
5	## Overview
6
7	Use this skill to evaluate investment fund choices, portfolio simplicity, cost drag, index fund discipline, asset allocation, and buy-hold behavior using Bogle's common-sense investing framework. It is educational decision support, not personalized financial advice.
8
9	## When to Use This Skill
10
11	Use this skill when the user asks:
12	- "Should I use an index fund or active fund?"
13	- "Are these fund fees too high?"
14	- "How should I think about ETFs, smart beta, or advisers?"
15	- "What stock/bond allocation is sensible?"
16	- "Am I overcomplicating my portfolio?"
17
18	## Core Principle
19
20	Own the broad market at very low cost and hold it for the long term. Before costs, investors collectively earn the market return; after costs, the more they pay intermediaries, trade, and chase winners, the less they keep.
21
22	## Workflow Inventory
23
24	\| Workflow \| User question pattern \| Inputs \| Steps \| Output \| Independent trigger? \| Distinct references? \| Triage score \| Should be subskill? \| Reason \|
25	\|---\|---\|---\|---\|---\|---\|---:\|---:\|---\|---\|
26	\| Fund comparison \| "Which fund should I choose?" \| Fees, turnover, strategy, benchmark, tax status \| Compare cost, diversification, active risk, simplicity \| Fund verdict \| Yes \| Yes \| 3 \| No \| Primary index-investing workflow. \|
27	\| Cost drag analysis \| "Do fees matter?" \| Expense ratio, turnover, horizon \| Estimate compounding drag \| Cost warning \| Yes \| Yes \| 3 \| No \| Same decision report. \|
28	\| Asset allocation \| "How much stocks/bonds?" \| Age, horizon, risk capacity, income need \| Apply simple stock/bond discipline \| Allocation range \| Yes \| Yes \| 3 \| No \| Fits the same portfolio policy. \|
29	\| Product skepticism \| "Should I buy ETF/smart beta/adviser pick?" \| Product structure, costs, incentives \| Check complexity, trading temptation, conflicts \| Use/avoid verdict \| Yes \| Yes \| 3 \| No \| Same Bogle cost/simplicity lens. \|
30
31	## Architecture Justification
32
33	The workflows are askable separately, but Bogle's method is intentionally simple: cost, broad diversification, tax efficiency, and patient holding are inseparable. A single-file skill preserves the "simplicity and parsimony" rule.
34
35	## DIMENSION 1: Broad Market Ownership
36
37	The Rule: Prefer owning the entire market through a low-cost traditional index fund over trying to select winners.
38
39	### Key questions to ask:
40	- Is the fund broadly diversified or making a narrow bet?
41	- Does it eliminate stock-picking, sector, and manager risk?
42	- Is the investor seeking market return or chasing alpha?
43
44	### Decision criteria / Checklist:
45	- Broad-market exposure.
46	- Low tracking error to the intended market.
47	- No unnecessary sector, style, or manager concentration.
48	- Clear role in the portfolio.
49
50	### Warning signals:
51	- Fund selection based on recent outperformance.
52	- Concentrated funds marketed as safer than they are.
53	- Complexity presented as sophistication.
54
55	### Agent instruction:
56	When reviewing a fund, first determine whether it gives broad, low-cost market ownership or introduces avoidable active risk.
57
58	## DIMENSION 2: Cost Matters
59
60	The Rule: Costs are the most reliable predictor of investor outcomes because every dollar paid to intermediaries is a dollar not compounding for the owner.
61
62	### Key questions to ask:
63	- What expense ratio, trading cost, tax cost, advisory fee, and spread apply?
64	- How long will the investor hold it?
65	- Does higher cost buy a reliably higher net return?
66
67	### Decision criteria / Checklist:
68	- Compare total all-in cost.
69	- Penalize turnover and tax inefficiency.
70	- Treat low cost as a durable advantage.
71	- In bonds, apply extra cost sensitivity because expected returns are lower.
72
73	### Warning signals:
74	- Ignoring small annual fees over long horizons.
75	- Adviser recommendations biased toward high-cost products.
76	- Performance claims shown before costs, taxes, or survivorship bias.
77
78	### Agent instruction:
79	Always run cost analysis before accepting a performance story.
80
81	## DIMENSION 3: Reversion and Performance Chasing
82
83	The Rule: Past fund winners usually revert; chasing them turns a winner's game into a loser's game.
84
85	### Key questions to ask:
86	- Is the user selecting based on recent performance?
87	- Are failed funds excluded from the track record?
88	- Is the fund's alpha statistically and economically durable after costs?
89
90	### Decision criteria / Checklist:
91	- Examine long periods, not hot streaks.
92	- Watch for survivorship bias.
93	- Prefer repeatable structure over manager story.
94	- Assume excess return is rare and competed away.
95
96	### Warning signals:
97	- Top-quartile fund rankings used as buying trigg

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common-sense-index-investing-bogle

17installs21forks

View on GitHub

How to install common-sense-index-investing-bogle?

simbajigege/book2skills/common-sense-index-investing-bogle

$npx -y skills add simbajigege/book2skills --skill common-sense-index-investing-bogle

Installs into the current project.

Summary

Apply John Bogle index investing rules for low-cost funds, asset allocation,

Files · 1

View on GitHub

SKILL.md

1	# The Little Book of Common Sense Investing — Index Investing Skill
2
3	Knowledge source: The Little Book of Common Sense Investing by John C. Bogle.
4
5	## Overview
6
7	Use this skill to evaluate investment fund choices, portfolio simplicity, cost drag, index fund discipline, asset allocation, and buy-hold behavior using Bogle's common-sense investing framework. It is educational decision support, not personalized financial advice.
8
9	## When to Use This Skill
10
11	Use this skill when the user asks:
12	- "Should I use an index fund or active fund?"
13	- "Are these fund fees too high?"
14	- "How should I think about ETFs, smart beta, or advisers?"
15	- "What stock/bond allocation is sensible?"
16	- "Am I overcomplicating my portfolio?"
17
18	## Core Principle
19
20	Own the broad market at very low cost and hold it for the long term. Before costs, investors collectively earn the market return; after costs, the more they pay intermediaries, trade, and chase winners, the less they keep.
21
22	## Workflow Inventory
23
24	\| Workflow \| User question pattern \| Inputs \| Steps \| Output \| Independent trigger? \| Distinct references? \| Triage score \| Should be subskill? \| Reason \|
25	\|---\|---\|---\|---\|---\|---\|---:\|---:\|---\|---\|
26	\| Fund comparison \| "Which fund should I choose?" \| Fees, turnover, strategy, benchmark, tax status \| Compare cost, diversification, active risk, simplicity \| Fund verdict \| Yes \| Yes \| 3 \| No \| Primary index-investing workflow. \|
27	\| Cost drag analysis \| "Do fees matter?" \| Expense ratio, turnover, horizon \| Estimate compounding drag \| Cost warning \| Yes \| Yes \| 3 \| No \| Same decision report. \|
28	\| Asset allocation \| "How much stocks/bonds?" \| Age, horizon, risk capacity, income need \| Apply simple stock/bond discipline \| Allocation range \| Yes \| Yes \| 3 \| No \| Fits the same portfolio policy. \|
29	\| Product skepticism \| "Should I buy ETF/smart beta/adviser pick?" \| Product structure, costs, incentives \| Check complexity, trading temptation, conflicts \| Use/avoid verdict \| Yes \| Yes \| 3 \| No \| Same Bogle cost/simplicity lens. \|
30
31	## Architecture Justification
32
33	The workflows are askable separately, but Bogle's method is intentionally simple: cost, broad diversification, tax efficiency, and patient holding are inseparable. A single-file skill preserves the "simplicity and parsimony" rule.
34
35	## DIMENSION 1: Broad Market Ownership
36
37	The Rule: Prefer owning the entire market through a low-cost traditional index fund over trying to select winners.
38
39	### Key questions to ask:
40	- Is the fund broadly diversified or making a narrow bet?
41	- Does it eliminate stock-picking, sector, and manager risk?
42	- Is the investor seeking market return or chasing alpha?
43
44	### Decision criteria / Checklist:
45	- Broad-market exposure.
46	- Low tracking error to the intended market.
47	- No unnecessary sector, style, or manager concentration.
48	- Clear role in the portfolio.
49
50	### Warning signals:
51	- Fund selection based on recent outperformance.
52	- Concentrated funds marketed as safer than they are.
53	- Complexity presented as sophistication.
54
55	### Agent instruction:
56	When reviewing a fund, first determine whether it gives broad, low-cost market ownership or introduces avoidable active risk.
57
58	## DIMENSION 2: Cost Matters
59
60	The Rule: Costs are the most reliable predictor of investor outcomes because every dollar paid to intermediaries is a dollar not compounding for the owner.
61
62	### Key questions to ask:
63	- What expense ratio, trading cost, tax cost, advisory fee, and spread apply?
64	- How long will the investor hold it?
65	- Does higher cost buy a reliably higher net return?
66
67	### Decision criteria / Checklist:
68	- Compare total all-in cost.
69	- Penalize turnover and tax inefficiency.
70	- Treat low cost as a durable advantage.
71	- In bonds, apply extra cost sensitivity because expected returns are lower.
72
73	### Warning signals:
74	- Ignoring small annual fees over long horizons.
75	- Adviser recommendations biased toward high-cost products.
76	- Performance claims shown before costs, taxes, or survivorship bias.
77
78	### Agent instruction:
79	Always run cost analysis before accepting a performance story.
80
81	## DIMENSION 3: Reversion and Performance Chasing
82
83	The Rule: Past fund winners usually revert; chasing them turns a winner's game into a loser's game.
84
85	### Key questions to ask:
86	- Is the user selecting based on recent performance?
87	- Are failed funds excluded from the track record?
88	- Is the fund's alpha statistically and economically durable after costs?
89
90	### Decision criteria / Checklist:
91	- Examine long periods, not hot streaks.
92	- Watch for survivorship bias.
93	- Prefer repeatable structure over manager story.
94	- Assume excess return is rare and competed away.
95
96	### Warning signals:
97	- Top-quartile fund rankings used as buying trigg

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6 picks

Type