6f6ddb31bf Trent, regarding your note at the bottom: its true Bernstein falls on the more conservative end of the spectrum. Think of the 1930s, where most of the large companies in the United States were doing just fine but the stock market was in tatters. It appealed very strongly to my analytical sense, much like A Random Walk Down Wall Street, but unlike that other book, this one attempts to identify the underlying ideas behind sound investing. Thanks, Oswegan Aaron Stroud says: October 13, 2007 at 12:37 am Trent, I would go one step further and say reading many investing books from different perspectives is *essential* if one wants to be on track for success. Chapter 4 The Perfect Portfolio So what can one do with this information? Buy index funds, of course. The truth is that its not really all that complex, at least not in the terms that an individual investor needs to know about.
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 blendThe dangers of actively picking stocks, as opposed to investing in the whole marketBehavioral finance and how state of mind can adversely affect decision makingReasons the mutual fund and brokerage industries, rather than your partners, are often your most direct competitorsStrategies for managing all of your assetssavings, 401(k)s, home equityas one portfolio Investing is not a destination. Why? The stock market is incredibly risky in the short term. Author: William J. So, why not just bypass all of this and invest in the broad stock market as a whole without the managers? Thats what it means to invest in an index fund. Instead, dig into a real investing book like A Random Walk Down Wall Street (or this one) and read through it slowly, 15 to 20 pages at a time, then think about the reading. Pingback: Reader Mailbag: Word Association - The Simple Dollar Leave a Reply Cancel reply Your email address will not be published. Second, practice discipline. Simply hold the stocks for a very long time.