The Four Pillars of Investing: Lessons for Building a Winning Portfolio Author: William Bernstein | Language: English | ISBN:
B0041842TW | Format: EPUB
The Four Pillars of Investing: Lessons for Building a Winning Portfolio Description
The classic guide to constructing a solid portfolio—with out a financial advisor! “With relatively little effort, you can design and assemble an investment portfolio that, because of its wide diversification and minimal expenses, will prove superior to the most professionally managed accounts.Great intelligence and good luck are not required.“ William Bernstein‘s commonsense approach to portfolio construction has served investors well during the past turbulent decade—and it‘s what made The Four Pillars of Investing an instant classic when it was first published nearly a decade ago. This down-to-earth book lays out in easy-to-understand prose the four essential topics that every investor must master: the relationship of risk and reward, the history of the market, the psychology of the investor and the market, and the folly of taking financial advice from investment salespeople. Bernstein pulls back the curtain to reveal what really goes on in today‘s financial industry as he outlines a simple program for building wealth while controlling risk.Straightforward in its presentation and generous in its real-life examples, The Four Pillars of Investing presents a no-nonsense discussion of: The art and science of mixing different asset classes into an effective blend The dangers of actively picking stocks, as opposed to investing in the whole market Behavioral finance and how state of mind can adversely affect decision making Reasons the mutual fund and brokerage industries, rather than your partners, are often your most direct competitors Strategies for managing all of your assets—savings, 401(k)s, home equity—as one portfolio Investing is not a destination. It is a journey, and along the way are stockbrokers, journalists, and mutual fund companies whose interests are diametrically opposed to yours. More relevant today than ever, The Four Pillars of Investing shows you how to determine your own financial direction and assemble an investment program with the sole goal of building long-term wealth for you and your family.
- File Size: 2488 KB
- Print Length: 336 pages
- Simultaneous Device Usage: Up to 4 simultaneous devices, per publisher limits
- Publisher: McGraw-Hill; 1 edition (June 17, 2010)
- Sold by: Amazon Digital Services, Inc.
- Language: English
- ASIN: B0041842TW
- Text-to-Speech: Enabled
X-Ray:
- Lending: Not Enabled
- Amazon Best Sellers Rank: #33,394 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
- #63
in Kindle Store > Kindle eBooks > Business & Money > Investing - #99
in Kindle Store > Kindle eBooks > Business & Money > Economics
- #63
in Kindle Store > Kindle eBooks > Business & Money > Investing - #99
in Kindle Store > Kindle eBooks > Business & Money > Economics
As the title suggests, the author presents within this book four essential pillars of successful investing. Each section of the book is then dedicated to investigating and detailing each of these pillars and they are: 1) Theory 2) History 3) Psychology and 4) Business. The first section on theory, is one which the author calls "the most important part of the book". In his words it "surveys the awesome body of theory and data relevant to everyday investing". This section centers itself around the "fundamental characteristic of any investment is that its return and risk go hand in hand." The second section on History postulates that "an understanding of financial history provides an additional dimension of expertise." The third section, Psychology, is one in which the author surveys the area of "behavioral finance". Where one "learns how to avoid the most common behavioral mistakes and to confront your own dysfunctional investment behavior." Last but not least the last section - Business - exposes how "the modern financial services industry is designed solely to serve itself."
What sets this book apart from other investing books is the breadth of areas covered, and also the writing style which is both "understandable and entertaining". A highly recommended read for any investor regardless of level.
Below are key excerpts from the book, that I found particularly insightful:
1) "The highest returns are obtained by shouldering prudent risk when things look the bleakest."
2) "Most small investors naturally assume that good companies are good stocks, when the opposite is usually true."
3) "Sine you cannot successfully time the market or select individual stocks, asset allocation should be the major focus of your investment strategy.
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