The Four Pillars of Investing: Lessons for Building a Winning Portfolio : Lessons for Building a Winning Portfolio

The classic guide to constructing a solid portfolio—without 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. Sound, sensible advice from a hero to frustrated investors everywhere William Bernstein's The Four Pillars of Investing 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, one designed to help every investor become more self-sufficient and make better-informed investment decisions. The 4 Pillars of Investing explains how any investor can build a solid foundation for investing by focusing on four essential lessons, each building upon the other. Containing all of the tools needed to achieve investing success, without the help of a financial advisor, it Preface Introduction 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 Presents advice on constructing top-returning portfolios without the help of a financial adviser, using a blend of market history, investment theory, and behavioral finance to help investors become more self-sufficient and make better informed investment decisions Presents advice in developing a financial portfolio by examining the theory, history, psychology and business of investing William J. Bernstein. Includes Bibliographical References (p. 299-303) And Index.