What do you think?
Rate this book
The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk
Twenty benefits from the three-fund total market index portfolio.
The Bogleheads' Guide to The Three-Fund Portfolio describes the most popular portfolio on the Bogleheads forum. This all-indexed portfolio contains over 15,000 worldwide securities, in just three easily-managed funds, that has outperformed the vast majority of both professional and amateur investors.
If you are a new investor, or an experienced investor who wants to simplify and improve your portfolio, The Bogleheads' Guide to The Three-Fund Portfolio is a short, easy-to-read guide to show you how.
The Bogleheads' Guide to The Three-Fund Portfolio describes the most popular portfolio on the Bogleheads forum. This all-indexed portfolio contains over 15,000 worldwide securities, in just three easily-managed funds, that has outperformed the vast majority of both professional and amateur investors.
If you are a new investor, or an experienced investor who wants to simplify and improve your portfolio, The Bogleheads' Guide to The Three-Fund Portfolio is a short, easy-to-read guide to show you how.
145 pages, Kindle Edition
First published June 1, 2018
575 people are currently reading
1367 people want to read
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 30 of 123 reviews
June 23, 2021
If you’ve picked up this book I’m going to hazard a guess you’re Interested In the three fund portfolio investment strategy. I applaud your attempt at research & direct you towards the bogleheads website for a more in-depth explanation of said strategy. Purchasing this book is not a good $15 (kindle) $4 (Audible) investment. If you’re outside of the US &/or have no intrest in investing in the US this book is absolutely useless to you.
I purchase the audible version of this book expecting a case for the three fund investment strategy. The reality was material that was heavy on testimonial praise & low on strategy. Luckily, I was already familiar with the “bogleheads” & was prepared for what amounts to a Vanguard sales pitch. My only wish was that I had the ability to skip past the fluff to the meat of the book. Sadly, I purchased the audible & had no choice in the matter. To add insult to injury the narration was coma inducing & advantages & data discussed (in comparison to the fluff) was scarce. The fact I wouldn't reccomend this book has little to do with the strategy though. To be clear I believe the three fund strategy has merit. & bc this book was heavy on the Vanguard paitch I also want to be sure to add a three fund portfolio (or any variation of the strategy) is possible outside of Vanguard. The article referenced above has some tickers for Fidelity, Thrift Savings plan, Blackrock iShares, etc.
If the briefly mentioned “Lazy Portfolio” strategy is your goal the Marketwatch website (which was listed as a source in the book) has up to date data on well known portfolios employing that strategy.
You can easily mirror "Second Grader’s Starter", "Aronson Family Taxable", "Dr. Bernstein’s No Brainer", or even "Yale U’s Unconventional" portfolio with limited effort on your part.
To recap: The information provided in this book can be obtained on the bogleheads website for free & in more detail. The strategy discussed can be accomplished outside of Vanguard. & if you desire the benefits of a professionally managed "lazy portfolio" with minimal effort an individual can easily mirror publicly published portfolios using a variation of the strategy discussed in this book.
2 stars
I purchase the audible version of this book expecting a case for the three fund investment strategy. The reality was material that was heavy on testimonial praise & low on strategy. Luckily, I was already familiar with the “bogleheads” & was prepared for what amounts to a Vanguard sales pitch. My only wish was that I had the ability to skip past the fluff to the meat of the book. Sadly, I purchased the audible & had no choice in the matter. To add insult to injury the narration was coma inducing & advantages & data discussed (in comparison to the fluff) was scarce. The fact I wouldn't reccomend this book has little to do with the strategy though. To be clear I believe the three fund strategy has merit. & bc this book was heavy on the Vanguard paitch I also want to be sure to add a three fund portfolio (or any variation of the strategy) is possible outside of Vanguard. The article referenced above has some tickers for Fidelity, Thrift Savings plan, Blackrock iShares, etc.
If the briefly mentioned “Lazy Portfolio” strategy is your goal the Marketwatch website (which was listed as a source in the book) has up to date data on well known portfolios employing that strategy.
You can easily mirror "Second Grader’s Starter", "Aronson Family Taxable", "Dr. Bernstein’s No Brainer", or even "Yale U’s Unconventional" portfolio with limited effort on your part.
To recap: The information provided in this book can be obtained on the bogleheads website for free & in more detail. The strategy discussed can be accomplished outside of Vanguard. & if you desire the benefits of a professionally managed "lazy portfolio" with minimal effort an individual can easily mirror publicly published portfolios using a variation of the strategy discussed in this book.
2 stars
Want to read
July 24, 2018https://www.nytimes.com/2018/07/13/bu...
..."arguing convincingly in this short — 112-page — engaging book that you can create a solid performing diversified portfolio with just three index funds. One fund invests in just about all United States stocks. Another holds almost every international equity. A third fund is made up of bonds from thousands of United States companies and government agencies. All three are what is typically known as total market index funds — one for domestic stocks, one for international stocks and one for bonds."
..."arguing convincingly in this short — 112-page — engaging book that you can create a solid performing diversified portfolio with just three index funds. One fund invests in just about all United States stocks. Another holds almost every international equity. A third fund is made up of bonds from thousands of United States companies and government agencies. All three are what is typically known as total market index funds — one for domestic stocks, one for international stocks and one for bonds."
September 30, 2024
very short book without much substance. Go read the main Bogglehead book instead.
July 25, 2018
I thought the book was more like a million endorsements. Missed the facts on what happens to your money in the total bond fund when interest rates go up How long you will be holding it to get back 0. Just stay the course millions of dollars in principle? Really did not convince me. His friend John Bogle is a great man I believe 0 is what he believes should be in international stocks? Probably is better then a lot of other things you could do. Guess I just was not convinced
February 1, 2021
A short and important summary of a great investment strategy.
I read John Bogle's books 30 years ago, advising investors to put all their money into a total US stock index fund and total US bond index fund. Had I followed his advice, I would have more money today. Instead, I made the error of thinking that since I had more knowledge, I could do it better. I was wrong. Better late than never.
I read John Bogle's books 30 years ago, advising investors to put all their money into a total US stock index fund and total US bond index fund. Had I followed his advice, I would have more money today. Instead, I made the error of thinking that since I had more knowledge, I could do it better. I was wrong. Better late than never.
November 9, 2020
2.5 Stars - This had some valuable information on the logic behind the Three-Fund Portfolio that reinforced much of what I learned from watching hours of YouTube😄 However, it mostly felt like an ode to Mr. Bogle and Vanguard. Despite how short this book is, I think the meat of it could have been covered in 20 pages or less.
June 4, 2019
I don’t read much, so for me to write a review on an investment book, I feel, makes this review a little more noteworthy. Long story short, after realizing how much money in fees I was paying for someone to pick my portfolio that was just average, overlapping and expensive, this book arms you with basic information that is needed to make that leap of investment faith. So I took that leap of investment faith, took over my own retirement portfolio (457 plan) and opened up a Vanguard IRA and followed this books advice. After 18 months with the market ups and downs the fact remains my portfolio is more diverse, more stable and steadily increasing and the best part is all the money I was paying in fees and high expense ratios are are now being invested in my portfolio and not a person or company. This book is not for the “get rich quick” person. However if you have patients, can stomach the “bear” and “bull” markets, this book will defiantly help you understand and make you feel more confident in doing it yourself. Plus you have an entire community of professional investors you can bounce ideas off from the Boglehead online forums (which is FREE!). Overall fear is the reason why we don’t take control of our finances, and once you get over that fear, it’s an amazing feeling knowing that it’s so easy and comforting that an infant DIY investor (like me) can really “do it yourself” with no experience, no training in the stock market and ignoring the high pressure of financial advisors that I would recommend this book and their advice to all!
December 22, 2018
Quite a short book laying out the main reasons the “three-fund portfolio” of the book title makes sense compared to investing in individual stocks or actively managed funds/etfs, or any other index funds/etfs. If you’ve read about index funds, say from any of Bogle’s books, you will see this is just a shortened version of one of his arguments for his funds. Fine for what it is, and fine as a reminder of why you invest in these funds, but the author interjects short testimonials within the text, making this sound too much like a marketing pitch. Without these testimonials, the book would be much shorter. Similar to some of the postings I've seen on Bogleheads and Reddit financial independence sites, and very similar to Bogle's own books.
January 2, 2021
I am an avowed Boglehead. I love these books for their zippy one liners about how it’s good policy to treat financial advisors as if they were all hardened criminals, and etc. Like all good advice, this is dull and unfashionable. Put your money in broad low-cost index funds, pick a reasonable asset allocation, and then do nothing until you are ready to retire. No get rich quick schemes or complicated systems here. Just financial security.
December 31, 2024
Nice and brief summary of the good parts of "black-box" investment theory.
This book + Ben Graham's "The Intelligent Investor" are a good complement.
If you can't read a book, consider this shorter PDF: https://www.etf.com/docs/IfYouCan.pdf
This book + Ben Graham's "The Intelligent Investor" are a good complement.
If you can't read a book, consider this shorter PDF: https://www.etf.com/docs/IfYouCan.pdf
December 16, 2024
Not bad, but you could go watch a 10 minute YouTube video on this topic. But since the book is short, worth reading if you are brand new.
June 26, 2020
Not bad if you’re just getting started on investment front. Most of the information presented is from Boglehead blog. Though summarization is nice.
September 21, 2019
This is a very short book , I dont even want to call it a book, its more like a pamphlet to me, but that is not the point here.
If you are a beginner investor, this is the definitely go-to book.
if you think buying an individual stock is a good way of investing your hard made money, please stop doing it and read this book first.
If you are a young profession and you are willing to save for future, you can also get some insights from reading this book.
Give a summary here:
1. Look back at the history, an universally accepted truth to be addressed again ---dont try to beat the market, timing the market--- you may be lucky for once or twice, it will run-out and eventually "reversion to the mean"
2. The benefits of owning the whole markets instead of a sector of market by buying market index fund.
3. Assets allocation between US stock, bonds and international stock.
4. the power of simplicity.
This is more like a philosophy of an experienced investor, who experienced and survived recessions and ever made bull and bear markets, its fun, easy and educational. I love the story of any old guy, at least they are a survivor, it has to have something particularly right to make through!
If you are a beginner investor, this is the definitely go-to book.
if you think buying an individual stock is a good way of investing your hard made money, please stop doing it and read this book first.
If you are a young profession and you are willing to save for future, you can also get some insights from reading this book.
Give a summary here:
1. Look back at the history, an universally accepted truth to be addressed again ---dont try to beat the market, timing the market--- you may be lucky for once or twice, it will run-out and eventually "reversion to the mean"
2. The benefits of owning the whole markets instead of a sector of market by buying market index fund.
3. Assets allocation between US stock, bonds and international stock.
4. the power of simplicity.
This is more like a philosophy of an experienced investor, who experienced and survived recessions and ever made bull and bear markets, its fun, easy and educational. I love the story of any old guy, at least they are a survivor, it has to have something particularly right to make through!
April 28, 2019
Excellent information presented logically and succinctly. It will improve my investment strategy a fair bit. However, it focuses solely in the best investment strategy and not how to achieve financial success in life by putting enough money away to invest and save for your future. As long as it's not the only personal finance book that you read, it's well worth your time. If you've never read anything about personal finance before, start with I Will Teach You To Be Rich by Ramit Sethi. An updated version of that book is coming out in May 2019.
January 28, 2020
Save Your Money
Skip this book and just do an internet search for "Three-Fund Portfolio". The search will take you to the Bogleheads web page, which completely explains the portfolio without all of the pointless testimonials and other fluff.
Skip this book and just do an internet search for "Three-Fund Portfolio". The search will take you to the Bogleheads web page, which completely explains the portfolio without all of the pointless testimonials and other fluff.
July 23, 2018
Short with minimal substance
January 12, 2024
easy, short read about the three-fund portfolio with some personal background about the Boggle Heads and the dood who runs Vanguard.
June 3, 2020
This is the 2nd of the 3 Boglehead books that I've read. It's a quick read, and excellent.
Asset allocation is the most important decision an investor can make. I recently worked with a financial advisor on a relatively simple, all-index based asset allocation, but frankly didn't quite understand exactly the rationale for the set of funds selected. So I decided I wanted to learn more about different asset allocation strategies.
My bias is towards using a strategy that is as simple as possible while still offering good returns. I'm not trying to get the best possible returns or absolutely optimize taxes, although the 3-fund portfolio presented arguably does a solid job at both.
The book is a quick read. It presents the 3-fund strategy - quickly! - spends much time on its merits, and then describes how to implement it. It's a quick, no frills, solid read on the subject. And inspiring.
I could see how others would criticize the book as spending maybe too much time on "why this is a good strategy", but the reason is that the key to investing is sticking with a strategy for a long time, and I believe the author's intent is to provide rationale that you can always come back to when there is doubt in your heart, as inevitably there will be over decades as things come up.
Highly recommended.
Asset allocation is the most important decision an investor can make. I recently worked with a financial advisor on a relatively simple, all-index based asset allocation, but frankly didn't quite understand exactly the rationale for the set of funds selected. So I decided I wanted to learn more about different asset allocation strategies.
My bias is towards using a strategy that is as simple as possible while still offering good returns. I'm not trying to get the best possible returns or absolutely optimize taxes, although the 3-fund portfolio presented arguably does a solid job at both.
The book is a quick read. It presents the 3-fund strategy - quickly! - spends much time on its merits, and then describes how to implement it. It's a quick, no frills, solid read on the subject. And inspiring.
I could see how others would criticize the book as spending maybe too much time on "why this is a good strategy", but the reason is that the key to investing is sticking with a strategy for a long time, and I believe the author's intent is to provide rationale that you can always come back to when there is doubt in your heart, as inevitably there will be over decades as things come up.
Highly recommended.
April 5, 2020
Reasonable overview of the reasons to be a passive investor
Short but not necessarily concise overview of the reasons to invest passively using index funds, specifically with only 3 Vanguard funds. I agree with other reviewers who commented you can find the same advice for free in r/personalfinance or the Bogleheads wiki.
Since Vanguard has started recommending a 4 fund portfolio (+ intl bond index) instead of just 3, after finishing this book I was curious about the author's thoughts on comparing the two. Thankfully, it was easy to find: https://www.bogleheads.org/forum/view...
Short but not necessarily concise overview of the reasons to invest passively using index funds, specifically with only 3 Vanguard funds. I agree with other reviewers who commented you can find the same advice for free in r/personalfinance or the Bogleheads wiki.
Since Vanguard has started recommending a 4 fund portfolio (+ intl bond index) instead of just 3, after finishing this book I was curious about the author's thoughts on comparing the two. Thankfully, it was easy to find: https://www.bogleheads.org/forum/view...
August 19, 2022
Please don't take my 2 star rating as a criticism of the three-fund methodology. I've been a three-funder for nearly 15 years now and am firmly entrenched as a long-time Boglehead myself. But....this book was incredibly short and not as helpful as I would have hoped. It is neither deeply insightful for an experienced three-funder like myself, nor is it structured in a way that makes it a trump card for people interested in (or maybe, needing convincing) the efficacy of the three-fund method. Really what I wanted was a single (easy to read) book that I could hand somebody that would convert them over to my investing dogma. Unfortunately, I don't think this really hits the mark.
April 4, 2023
This book is more toward to be a bit technology, but by and large it is readable for someone who has the basic skills and knowledge of portfolio construction.
Here are sth i think is worthy to write down,
1. Always looking for the low-cost funds
2. Ask your advisor, what is your own portfolio and its performance?
3. What is a good fund?
-no advisor risk
-no asset bloat
-no index front running
-no manger risk: key person leave
-no overlapping
-no single sector exposure
-low TR
-has all styles
-compounding is good for passive index fund
-low MER
4. Three portfolio methods
5. Bull market, buying more bonds; bear market, buying more stocks.
Here are sth i think is worthy to write down,
1. Always looking for the low-cost funds
2. Ask your advisor, what is your own portfolio and its performance?
3. What is a good fund?
-no advisor risk
-no asset bloat
-no index front running
-no manger risk: key person leave
-no overlapping
-no single sector exposure
-low TR
-has all styles
-compounding is good for passive index fund
-low MER
4. Three portfolio methods
5. Bull market, buying more bonds; bear market, buying more stocks.
This entire review has been hidden because of spoilers.
December 11, 2024
Stellar book for anyone new to the bogglehead philosophy. Same old stuff for anyone even slightly versed in the strategy.
Quick easy overview of the boggle heads philosophy and the three fund portfolio. Felt very light and airy. Not much substance to it. This is "this meeting could have been an email" but in book form. "This book could have been a blog post".
Would have loved some more insight into the 3 vs 4 fund portfolio. Pretty disappointed foreign bonds weren't even mentioned. To be fair it's not called "the boggle heads guide to the 4 fund portfolio. Great advice but felt like "old news" to me... But that's coming from a self-desribed bogglehead.
Quick easy overview of the boggle heads philosophy and the three fund portfolio. Felt very light and airy. Not much substance to it. This is "this meeting could have been an email" but in book form. "This book could have been a blog post".
Would have loved some more insight into the 3 vs 4 fund portfolio. Pretty disappointed foreign bonds weren't even mentioned. To be fair it's not called "the boggle heads guide to the 4 fund portfolio. Great advice but felt like "old news" to me... But that's coming from a self-desribed bogglehead.
This entire review has been hidden because of spoilers.
June 12, 2023
This was a great supplemental read to the "Boglehead's Guide to Investing." It's short, sweet, sticks to the point, and offers plenty of explanation as to what makes a three-fund portfolio a good strategy. It's not as informational as the "Boglehead's Guide to Investing," and that should of course be your first stop for an investment book, but this guide offers just as sound advice (on a much smaller scale). I once again appreciate the Boglehead's willingness to be transparent and not try to force their products on readers (they even recommend funds at companies other than Vanguard).
May 20, 2024
I would agree with other reviewers that the book read a little like a vanguard sales pitch & the testimonials weren’t that helpful in terms of broadening the readers knowledge base. However, I think that’s what most readers would expect going into reading a Bogleheads book & I am a huge fan of Jack Bogle & Vanguard myself, so I didn’t mind. I appreciate the simplicity of the 3 portfolio design and think it has a lot of merit as an investment strategy. I think the book did a good job of highlighting the pros of this portfolio. I’d still recommend reading it.
January 23, 2019
As previous reviewers have mentioned, as good as the information in this book is, it is very much for the US prospective investor and anyone interested in the putting this theory into practice needs to educate themselves further in order to be able to use it in their own tax jurisdiction. Still
. A good book and doesn't oversimplify an idea that is by its own nature, oversimplified. Nice and short too
. A good book and doesn't oversimplify an idea that is by its own nature, oversimplified. Nice and short too
December 13, 2020
The book promotes a three fund portfolio. It lists the benefits and explains why its the best option for most. It's written in clear easy to understand language. Three out of five stars because it lacks depth. The book doesn't describe the considerations opposed to the three fund portfolio. Neither does it take into account global developments, which could impact the strongly favored US stocks. They should have gone deeper, instead of repeating the same message.
October 5, 2019
Stay the course
One of the best books I have read on investing. Author has provided statistical data to convince reader that investing is simple. Good for investors of all ages. Easy to understand language. Not much financial jargon. Author provides wealth of resources to read further on the topic.
One of the best books I have read on investing. Author has provided statistical data to convince reader that investing is simple. Good for investors of all ages. Easy to understand language. Not much financial jargon. Author provides wealth of resources to read further on the topic.
June 2, 2020
It seems like this book gets some mediocre reviews because it's short and simple. But I think that's exactly the point that the author is trying to convey. You don't need huge text books, and a complicated investment strategy - just stick to this three index fund strategy. Overall I liked this book and would recommend it to others.
April 23, 2021
This book help me refine part of my investment strategy I still own two individual stocks one is Warren buffett's company class b shares the other is monthly dividend company. But I'm working on consolidating my index fund investments to just three funds and that is where a majority of my stock investment money is in this is a worthwhile read and Taylor brings up valid points.
May 16, 2021
If you want to get right down to the bones of the three-fund portfolio strategy, this book delivers. However, because the process is so uncomplicated, what you're getting here is a consolidated quick guide of info found online. This isn't the best place to start learning about investing but the book is great for cutting through the noise to remind you of the strategy that works.
Displaying 1 - 30 of 123 reviews