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

The Four Pillars of Investing : Lessons for Building a Winning Portfolio
ISBN: 9780071747059
Publication Date: 16 August 2010

The classic guide to constructing a solid portfolioâ"without a financial advisor!

âWith 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.â

William Bernsteinâs commonsense approach to portfolio construction has served investors well during the past turbulent decadeâ"and itâs 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 todayâs 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 assetsâ"savings, 401(k)s, home equityâ"as one portfolio

Investing is not a destination. It is a journey, and...