Synopses & Reviews
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 Bernsteins commonsense approach to portfolio construction has served investors well during the past turbulent decadeand its 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 todays 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 assetssavings, 401(k)s, home equityas 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.
Bernstein's book gives investors the tools they need to construct top-returning portfolios--without the help of a financial adviser. In a relaxed, nonthreatening style, Dr. Bernstein provides a distinctive blend of market history, investing theory, and behavioral finance.
Since its initial publication, The Four Pillars of Investing
has become a staple for the independent-minded investor looking to make better-informed investment decisions. Written by noted financial expert and neurologist William Bernstein, this time-honored investing guide provides the knowledge and tools for achieving long-term profitability.
Bernstein bridges the four fundamental topics successful investors use to generate exceptional profits on a consistent basis:
- The Theory of Investing: “Do not expect high returns without risks.”
- The History of Investing: “About once every generation, the markets go barking mad. If you are unprepared, you are sure to fail.”
- The Psychology of Investing: “Identify the eras conventional wisdom and assume that it is wrong. More often than not, it is.”
- The Business of Investing: “The stockbroker services his clients in the same way that Bonnie and Clyde serviced banks.”
From the essential soundness of classic portfolio theory through the inherent wisdom of investing in multiple asset classes, The Four Pillars of Investing provides a distinctive blend of market history, investing theory, and behavioral finance to help you become a successful, self-sufficient investor.
The core of William Bernstein's message in this text is using efficient diversification to develop portfolios that provide the best possible returns for the risk and doing all of this without the help of a financial advisor.
About the Author
William J. Bernstein is the editor of the quarterly asset allocation journal Efficient Frontier, founder of the popular website EfficientFrontier.com, and a principal in Efficient Frontier Advisors. He is often quoted in national publications, including The Wall Street Journal, Barron's, Money, and Forbes.
Table of Contents
; Pillar One: The Theory of Investing
; Chapter 1.
No Guts, No Glory; Chapter 2.
Measuring the Beast; Chapter 3.
The Market is Smarter Than you Are; Chapter 4.
The Perfect Portfolio; Pillar Two: The History of Investing
; Chapter 5.
Tops; Chapter 6.
Bottoms; Pillar Three: The Psychology of Investing
; Chapter 7.
Misbehavior; Chapter 8.
Behavioral Therapy; Pillar Four: The Business of Investing
; Chapter 9.
Your Broker is Not Your Buddy; Chapter 10.
Neither is Your Mutual Fund; Chapter 11.
Oliver Stone meets Wall Street: Investment Strategy; Chapter 12.
Will you Have Enough?; Chapter 13.
Defining Your Mix; Chapter 14.
Getting Starts, Keeping it Going; Chapter 15.
A Final Word