Investment Fables: Exposing the Myths of "Can't Miss" Investment Strategies (Financial Times Prentice Hall Books)

The truth about 13 of today's most widely touted investment strategies. 10 powerful lessons for every investor Overcoming the enduring myths about markets High dividend stocks: better and safer than bonds--or not? Cheap stocks: cheap for a reason? Should you invest in quality? Momentum? The next big thing? Or what? You've heard 'em. (Maybe even from your broker!) They're the "can't lose" investment stories that promise you a no-risk path to profits … "Buy companies trading below book value." "Follow the momentum." "Buy stocks with low P/Es." "Stick with quality." "Buy after bad news." "Buy after good news." "Follow the insiders." "Do whatever Warren Buffett's doing." And on, and on, and on … They sound good. But do they really work? You're about to find out. In Investment Fables, one of the world's leading investment researchers runs the numbers on 13 of today's most widely touted strategies, objectively answering the questions your broker can't answer. Has it worked over the long term? Over the short term? If it made sense once, does it still make sense? Are the promised benefits a statistical mirage? Could it work, as one part of your investment strategy? What are the downsides–and how can you mitigate them? If you want to make smarter investment decisions, you'll find this book utterly indispensable. Annotation The truth about 13 of today's most widely touted investment strategies. 10 powerful lessons for every investor Overcoming the enduring myths about markets High dividend stocks: better and safer than bonds--or not? Cheap stocks: cheap for a reason? Should you invest in quality? Momentum? The next big thing? Or what? You've heard 'em. (Maybe even from your broker!) They're the "can't lose" investment stories that promise you a no-risk path to profits "Buy companies trading below book value." "Follow the momentum." "Buy stocks with low P/Es." "Stick with quality." "Buy after bad news." "Buy after good news." "Follow the insiders." "Do whatever Warren Buffett's doing." And on, and on, and on They sound good. But do they really work? You're about to find out. In Investment Fables, one of the world's leading investment researchers runs the numbers on 13 of today's most widely touted strategies, objectively answering the questions your broker can't answer. Has it worked over the long term? Over the short term? If it made sense once, does it still make sense? Are the promised benefits a statistical mirage? Could it work, as one part of your investment strategy? What are the downsidesand how can you mitigate them? If you want to make smarter investment decisions, you'll find this book utterly indispensable. Most investors make their decisions based on "stories" that sound logical...stories backed by anecdotes claiming enormous success. Value investing sounds great. So does momentum investing. So does choosing high-dividend or low P/E stocks. So do many other strategies...even strategies that flatly contradict each other. They can't all work, no matter how good they sound. But some work better than others. And it's possible to combine the best elements from several strategies...maximizing your return and slashing your risk. In this book, one of the world's leading investment and valuation researchers will show you how. No "happy anecdotes" here: This is a thorough, objective analysis of the actual results of 13 different investment approaches...and their current outlook. If protecting and growing your assets is more urgent to you than ever, don't settle for stories. Settle for hard analysis A hard-nosed, objective evaluation of today's most widely-touted investment strategies. Examines 14 common investment strategies and presents exactly what works--and what doesn't. Beyond anecdotes: run the numbers with one of the world's leading investment researchers and top-ranked business school professors Guidance on understanding the real opportunities and not-so-obvious risks associated with each strategy--and instruction on how to mitigate the risks Investing is full of stories that sound good when they are told but don't hold up under close scrutiny.