John Bogle is one of the most respected investment writers in the business. Bogle, who founded The Vanguard Group, knows of what he writes. At Vanguard he pioneered no-load mutual funds along with introducing the first index fund* and his advice is to invest in index funds. The Little Book of Common Sense Investing: the only way to guarantee your fair share of stock market returns is all about how to become a better investor in 18 easy to understand chapters.
Bogle champions a simple approach to creating wealth and keeping it. If you don’t want to read the entire book, (it is a little book, just like it states in the title), at least take a look at the last chapter: What Should I Do Now? Bogle offers suggestions on what to do with your "funny money" as well as your "serious money" and outlines his investment strategy.
Read and prosper…
* Definition: Index funds are mutual funds that
attempt to copy the performance of a stock market index. The most
common index fund tries to track the S&P 500 by purchasing all 500
stocks using the same percentages as the index. Other indices that
mutual funds try to copy include: Russell 2000, Wilshire 5000,
MCSI-EAFE, Lehman-Brothers Aggregate Bond, and NASDAQ 100.
Source: About.com:mutual funds