.Epub ☪ The Four Pillars of Investing ⚇ eBooks or Kindle ePUB free

It s an interesting read about introduction to investing I may agree on some parts of the book and disagree with some, but overall, your time investment in reading this one may or may not bear fruits in the near future Investment as they is like a water in the river It will continue to flow as long as there will be no blockage on its way It can become big or become smaller but it always depend on what canal or tunnel it passes through Or maybe it might goes to the sea or ocean perhaps T It s an interesting read about introduction to investing I may agree on some parts of the book and disagree with some, but overall, your time investment in reading this one may or may not bear fruits in the near future Investment as they is like a water in the river It will continue to flow as long as there will be no blockage on its way It can become big or become smaller but it always depend on what canal or tunnel it passes through Or maybe it might goes to the sea or ocean perhaps The four pillars of investing are Theory, History, Psychology and the Business according to the author Perhaps THEORiticallY people like invesment, but according to our HISTORY, investment is derailed or sometimes it fails to go up, but PSYCHOLOGicallY speaking it should go up higher, but before we think of the BUSINESS of investing , let s ask ourself are we ready to face the challenges ahead Very interesting book, well written but it isn t for people who want a quick buck I liked how informative this book was I just didn t really learn anything new But then there are no new things under the sun If you are serious about investing your money, remember diversification, patience, spend less, forget about deceiving the market and remember no one can predict the future, no matter how their track records may indicate otherwise Finance 101 Past performance isn t indicative of future Very interesting book, well written but it isn t for people who want a quick buck I liked how informative this book was I just didn t really learn anything new But then there are no new things under the sun If you are serious about investing your money, remember diversification, patience, spend less, forget about deceiving the market and remember no one can predict the future, no matter how their track records may indicate otherwise Finance 101 Past performance isn t indicative of future performance In short, Bernstein advocates wide diversification through a portfolio of passively managed index funds in different asset classes, and buy and hold for the long termPillar 1 Investment Theory High returns requires high risk The market is efficient Own it all by indexing You can t time the market or pick winning stocks, so asset allocation is the only factor you can control, hence index the whole market.Pillar 2 Investment HistoryThehistory you know, the better prepared you ll be In short, Bernstein advocates wide diversification through a portfolio of passively managed index funds in different asset classes, and buy and hold for the long termPillar 1 Investment Theory High returns requires high risk The market is efficient Own it all by indexing You can t time the market or pick winning stocks, so asset allocation is the only factor you can control, hence index the whole market.Pillar 2 Investment HistoryThehistory you know, the better prepared you ll be for the market s ups and downs Basic rule of technology investing users, not makers, profit most.Pillar 3 Investment Psychology Focus on long term data Large and small value outperform large growth Returns are random don t imaging patterns.Pillar 4 Investment Business Pay attention to management fees and expenses, they are costly in the long run Ignore almost all investing media Start with a percentage of bonds equal to your age Hold 15 40% of stocks in foreign stocks REITs have returns about equal to the stock market allocate a max of 15% Young people should have a max of 75% in stocks, with the rest in short term bonds.Portfolio for age 20 30Assumes 60 40 stock bond split32.5% large cap12.5% international7.5% REIT7.5% small value40% cash and bondsLater, add large value, small cap, corporate bonds, precious metals, split international by region, and add TIPS.Use value averaging instead of dollar cost averaging try to hit a target amount each month If the fund declines, you must investIf the fund goes up, invest less This forces investment at market bottoms rather than tops In the introduction to his book, The Four Pillars of Investing Lessons for Building a Winning Portfolio, Dr William Bernstein states that the competent investor never stops learning Yet, because the world of investing can be such a confusing place, it sometimes seems that theyou learn, theconfused you get As a participant on the Bogleheads message board, I feel I am an educated investor but still I often get lost after reading all the different debates Should I invest in tot In the introduction to his book, The Four Pillars of Investing Lessons for Building a Winning Portfolio, Dr William Bernstein states that the competent investor never stops learning Yet, because the world of investing can be such a confusing place, it sometimes seems that theyou learn, theconfused you get As a participant on the Bogleheads message board, I feel I am an educated investor but still I often get lost after reading all the different debates Should I invest in total markets or slice and dice my portfolio Should I invest all my money at once or adopt a dollar cost averaging philosophy How much foreign exposure should I have Is now the right time to buy REITs, or do I need them at all One day, while perusing the message board and sifting through some of these same questions, I found a suggested investing reading list, and this book was listed as the starting point In this straightforward book, explained with easy to understand examples, Dr Bernstein provides a solid framework for investors to begin to answer some of these questions In setting this framework, Dr Bernstein introduces readers to four basic concepts, or what he terms the four pillars of investing the theory, history, psychology, and business of investing The first pillar, the theory of investing, gets most of his attention, as it comprises the first 100 pages of the book and explains how the bond and stock markets work In this section, Dr Bernstein emphasizes what he calls the most important concept in finance the relationship between risk and reward If investors want high returns, they must take great risks Following this logic, Dr Bernstein makes some conclusions that may seem foreign to most investors For example, the best time to invest is not when things are going well, but when they are going poorly Those who invest during a bubble are not taking a risk and therefore can expect low returns, whereas those investing during a bear market are taking a risk and therefore can expect but will not be guaranteed higher returns Similarly, those who invest in good companies like Wal Mart can expect lower returns than those who invest in bad companies like K Mart, because good companies, with low risk, are generally bad stocks, while bad companies are generally good stocks This idea that high returns cannot be achieved without significant risk is the key concept Dr Bernstein continues to emphasize throughout the book.While the first pillar gets the most attention, Dr Bernstein terms the second pillar, the history of investing, as the one that causes the most damage to investors What separates the professional investor from the amateur investor is that the professional recognizes that bear markets are a fact of life they inevitably come about once every generation, usually sparked by a new technological advance Professional investors stay the course and don t panic they have a plan and stick with it In fact, for beginning investors, a bear market is a blessing, allowing them to accumulate stocks at low prices This concept again ties to the relationship between risk and return throughout history, in times of great optimism, when prices are the highest and the risk is the lowest, future returns are the lowest, and when times look the bleakest, and risk is the highest, future returns are also the highest In the third pillar, the psychology of investing, this relationship between risk and return is again raised Most investors follow conventional wisdom of the time, investing in specific stocks or asset classes that are currently the most successful and thus buying at high prices Dr Bernstein provides two strategies to counter this psychology He advises readers first to identify the conventional wisdom of the time and do the exact opposite He also advises readers that assets with the highest future returns tend to be the ones that are currently most unpopular The investor that is able to go against the flow to stick with unpopular asset classes and pay attention to his or her entire portfolio return in the long run will be the most successful.Finally, the fourth pillar concerns the business of investing, which details how brokers, analysts, and the media work together to make money at the expense of often ignorant investors by peddling bad or biased information Instead of paying exorbitant fees to brokerage firms or financial advisors, which steer investors to underperforming managed funds, investors can buy low expense index funds through companies like Vanguard and thus tap into the most powerful intelligence in the world of finance the market itself, which is, according to Dr Bernstein, the best advisor available.Dr Bernstein concludes his book by applying lessons learned from these four pillars and giving readers practical advice for how to construct their own portfolios Although this section fell short of answering all my questions, the book as a whole serves as an essential investing guide in providing investors with a basic framework to use in evaluating the myriad of investing choices available As even Dr Bernstein concedes, Four Pillars of Investing is not an all encompassing book on investing It is not the only book you will need to read, and it is probably not the first investing book you should read, but it is nonetheless a book every investor should read Re reading this in light of the money meltdown One of the best books about investing I ve read By no means the first one you should read, but once you ve got some of the basics under control, this helps takes it to a very sensible level Asset allocation and the history of booms and busts are key here Though I just finished it a couple of weeks ago, I d like to start re reading it again soon Very readable and interesting, though I can do without ever hearing about the tulip bulb bubble y Re reading this in light of the money meltdown One of the best books about investing I ve read By no means the first one you should read, but once you ve got some of the basics under control, this helps takes it to a very sensible level Asset allocation and the history of booms and busts are key here Though I just finished it a couple of weeks ago, I d like to start re reading it again soon Very readable and interesting, though I can do without ever hearing about the tulip bulb bubble yet again Bernstein argues that the successful investor must understand four essential content areas the theory, history, psychology, and business of investing Practically speaking, he argues that the best portfolios build on that understanding will be based on indexed mutual funds in several key asset classes.Bernstein s theoretical understanding of the market is complex, and any short review will not do it justice It is fair to say, however, that he argues that the market is much smarter andeff Bernstein argues that the successful investor must understand four essential content areas the theory, history, psychology, and business of investing Practically speaking, he argues that the best portfolios build on that understanding will be based on indexed mutual funds in several key asset classes.Bernstein s theoretical understanding of the market is complex, and any short review will not do it justice It is fair to say, however, that he argues that the market is much smarter andefficient than any one of its actors Trying to beat the market consistently, year after year, is a pursuit doomed to failure Also key to his understanding is the assessment that risk and reward go hand in hand The latter does not come without the former.His history of the market is to some extent a way to support the theory outlined in the book s first section, but he s a good storyteller, and many of the theoretical technicalities are easier to understand in historical narrative than pure mathematics Berstein emphasizes the historical fact that the market periodically goes mad, resulting in bubbles and bursts.Bernstein s market psychology can be summed up by saying that the investor is his own worst enemy It s easy to understand buy low, sell high It s quite another thing to buy when the whole world is selling, or vice versa Following fads, however, is a quick way to deplete a portfolio It s not unusual to hear insiders critique their own industry Politicians, educators, athletes, academics, and many others routinely dismiss others in their fields It was still surprising, however, to read the near utter contempt in which Bernstein holds the profession of finance They re all out to get your money Stock brokers, mutual fund managers, and finance writers he heaps scorn on them all Which isn t to say he doesn t back up his scorn with lots of data He certainly does, but in the end the people who profess to want to help you earn money are reallyinterested in taking it from you.It may be trite to boil Bernstein s investment advice down to if you can t beat, join em, but that s pretty close to it Since the individual investor or fund manager is highly unlikely to beat the market consistently over the life of a decent portfolio, the best thing to do is bet with the market indices themselves His advice issubtle than that, of course, but playing the index is a pretty close approximation of his thesis.Other than a long ago reading of Peter Lynch s Beat the Street, this is the first serious treatment of investing that I ve read, so I m not particularly qualified to critique Bernstein s arguments It is fair to say, however, that he argues clearly, backs up his assessments with understandable data, and is quick to point out the weaker orquestionable points of his thesis .Epub ⚓ The Four Pillars of Investing ⚔ Explains how independent investors can construct a superior investment portfolio by learning the four essentials of investing Awesome Contains a LOT of theory, maths and can be hard to read But it really defines a framework to work on your own portfolio I always love the books that starts from the beginning of theory, from basics principles, deriving step by step the correct conclusions, and not by making you accept a lot of assumptions and jumps of faith The author talks freely about his opinion of active managed funds.This one and A Random Walk Down Wall Street are my favorites to introduce somebody to investin Awesome Contains a LOT of theory, maths and can be hard to read But it really defines a framework to work on your own portfolio I always love the books that starts from the beginning of theory, from basics principles, deriving step by step the correct conclusions, and not by making you accept a lot of assumptions and jumps of faith The author talks freely about his opinion of active managed funds.This one and A Random Walk Down Wall Street are my favorites to introduce somebody to investing.And remember, if your family and friends talk about some trendy investment, just run, run After years of studying technical and fundamental analysis, I can finally rest Dr Bernstein William J Bernstein, a buy and hold, dollar cost averaging, index investing, portfolio rebalancer has made me a believer I would have created a synopsis of the book for quick reviews down the road, but Bernstein conveniently included one at the end of each chapter, and one in the last chapter covering the whole book The book is well written, intelligent, and extraordinarily practical After years of studying technical and fundamental analysis, I can finally rest Dr Bernstein William J Bernstein, a buy and hold, dollar cost averaging, index investing, portfolio rebalancer has made me a believer I would have created a synopsis of the book for quick reviews down the road, but Bernstein conveniently included one at the end of each chapter, and one in the last chapter covering the whole book The book is well written, intelligent, and extraordinarily practical A very good book I d recommend to anyone interested in investing It covers all the fundamentals one should know to try to avoid making big mistakes Though I do disagree with his assumption that the market is rational in that risk and return will always be proportionally related.