He also teaches his to use value averaging as a mechanism to add to your investment portfolio and rebalance at the same time. The Four Pillars are: The Theory of Investing, which isn't rigorously theoretical; The History of Investing, knowing the lessons of history helps you avoid its errors; The Psychology of Investing, again not terribly psychological but it exposes the most invidious investing traps; The Business of Investing, the first chapter here is titled "Your Br. But it really defines a framework to work on your own portfolio.

Very interesting book, well written but it isn't for people who want a quick buck. I loved this book. This is not a book for beginners but if you are looking for substance regarding investment strategy, this is an excellent book to read. It updated his earlier books on investing to cover the position after the Great Financial Crisis (GFC) of 2008-09, and the most recent research on investing, including that by Elroy Dimson, Paul Marsh, and Mike Staunton, authors of "Triumph of the Optimists". Simple, but not easy. I listened to the audio book and I was expecting a serious financial tome but this book was delightful. Finance 101: Past performance isn't indicative of future performance. Refresh and try again. "[2] A contemporary implementation of the Portfolio includes 40% short-term bonds, and 15% international equity evenly divided into Europe, Pacific, and emerging markets funds.[3]. It also shows that the basic role of financial press is marketing financial products and not providing information. Price New from Used from Hardcover, International Edition "Please retry" $29.95 . ), and the Business of Investing (long-term, low-cost index funds will statistically beat any actively managed plan). William Bernstein does an excellent job of not only putting together a solid investing strategy.

I'm pretty sure it is beneficial to those who are interested in investing in stock market! Investors must explore the interplay of risk and investment return. In 1996, Bernstein introduced Coward's Portfolio, a popular form of lazy portfolio. In the time of Tang dynasty, Lǐ Xūzhōng (Chinese: 李虛中) reorganized this concept, and used the each of the two sexagenary cycle characters assigned to a person's birth year, month and date to predict one's personality and future. His fourth book, A Splendid Exchange: How Trade Shaped the World, published in 2008 by Grove Atlantic, is a history of trade.


Add the dozen-odd books he has authored, and you get an extremely prolific writer.

This book is a must read for anyone that will ever do investing. This interview with Dr. Bernstein is chock-full of so much financial wisdom that every investor should know.

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Through the numerous anecdotes provided by financial market history such as the Dutch Tulip Bubble of the 1600s and the Great Depression of the 1930s, this book provides a broad overview and introductory education in finance and investing. Just a moment while we sign you in to your Goodreads account. The next thing to grasp is the theory of diversification - how you mix assets. Put a different way, a physician, physicist, or chemist who is unaware of their discipline's history does not suffer greatly from the lack thereof; the investor who is unaware of financial history is irretrievably handicapped.

A very good book I'd recommend to anyone interested in investing.

His research is in the field of modern portfolio theory and he has published books for individual investors who wish to manage their own equity portfolios.

Whether you invest in stocks, bonds, or for that matter real estate or any other kind of capital asset, you are rewarded mainly for your exposure to only one thing—risk. The Four Pillars of Investing: Lessons for Building a Winning Portfolio Audio CD – Audiobook, September 23, 2003 by William Bernstein (Author) 4.5 out of 5 stars 133 ratings.

Investors tend to be almost touchingly naïve about stock brokers and distributors. Will You Have Enough? Defining Your Mix 243 Chapter 14.

This book is somewhat technical and will be especially appealing to the reader who enjoys mathematical and scientific explanations of financial concepts.

This gives you a good perspective regarding markets. A really well written treatise on the basics of investing for those who didn't major in finance in college and don't want to wallow in stock analysis.

A market that doubles rapidly is just as likely to halve rapidly, and a stock that appreciates 900% is just as likely to fall 90%. See 2 questions about The Four Pillars of Investing…, The Little Book of Common Sense Investing, The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns, PAKISTAN PROPERTY INVESTMENT - Crown City Gwadar, Rumaan Alam's Uncannily Prophetic Page-Turner. I am neutral on Duration, though a case can be made that Duration is a certain risk, particularly in an inflationary environment. Goodreads helps you keep track of books you want to read. The four pillars: Theory of Investing (returns are directly linked to risk), the History of Investing (understand past performance to build a portfolio, not to chase returns), the Psychology of Investing (stay the course!

Asset allocation is a major driver of portfolio returns, and it should be fundamental, even more crucial than asset selection. But then there are no new things under the sun. I first met Bill Bernstein at the Bogleheads Conference in 2008. Should I invest all my money at once or adopt a dollar cost averaging philosophy? Unlike that 'old news', this book goes further by explaining how to value an asset, how to construct a portfolio, and how to think about your retirement 'nest egg'. To see what your friends thought of this book. Oliver Stone Meets Wall Street 219 Investment Strategy: Assembling the Four Pillars 227 Chapter 12. Bernstein is a proponent of modern portfolio theory, which stands in stark contrast to the view that skilled managers can succeed in picking particular investments that will outperform the market, whether through market timing, momentum investing, or finding assets whose future value have been underestimated by the market.

It offers a chance to learn from a real-life investor. How much foreign exposure should I have? The individual investor's state of mind affects his or her decision making.

Cheesy title, great book.

This book started out well with the introduction and the history of the financial markets. High emphasis on knowing financial history and relying on data. An example: people tend to be attracted to financial choices that carry low probabilities of high payoffs.

The Four Pillars are: The Theory of Investing, which isn't rigorously theoretical; The History of Investing, knowing the lessons of history helps you avoid its errors; The Psychology of Investing, again not terribly psychological but it exposes the most invidious investing traps; The Business of Investing, the first chapter here is titled "Your Broker is Not Your Buddy." This was called the "Three Pillars of Destiny", and after this theory become more and more popular. Otherwise, you would realize that if he actually knew that the price was going to increase, he would not tell it to you or even his own mother. It is a fact that, from time to time, the markets and investing public go barking mad.

It has been a spring board to other investment reading. Of course, this is just a caricature. Finance 101: Past performance isn't indicative of future.

He explains how to diversify and how to get started from nothing. One of the best books on personal finance and investing that I've read in years.

I'm in the middle of his Intelligent Asset Allocator, which has a lot more math. The science of mixing different asset classes into an effective blend is called "portfolio theory" and occupies centre court in the grand tournament of investing. It did more to bring me peace of mind and security in the fact that index fund investing is the only way to go. What a fantastic book about investments and investment strategy. They usually fail to understand the everyday working relationship between risk and reward and routinely fail to stay the course when things get rough.

Good stuff!

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.

The 4 Pillars of Investing is condensed, yet easy to learn.

How Trade Shaped the World from Prehistory to Today, "The Coward's Portfolio -- A Modest Proposal", https://en.wikipedia.org/w/index.php?title=William_J._Bernstein&oldid=875514906, Wikipedia articles with SUDOC identifiers, Wikipedia articles with WorldCat identifiers, Creative Commons Attribution-ShareAlike License, This page was last edited on 27 December 2018, at 03:17. The failure modes of individual investors are as varied as their personalities. Excellent financial advice.

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Bernstein holds a PhD in chemistry and an MD; he practiced neurology until retiring from the field. See all formats and editions Hide other formats and editions.