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

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

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The classic guide to constructing a solid portfolio―without a financial advisor!

First published two decades ago, The Four Pillars of Investing has been the go-to resource for an entire generation of investors. This updated edition of the investing classic provides the foundational knowledge you need to avoid the most common pitfalls and build a portfolio in today's roller-coaster world of investing.

Retired neurologist and master investor William J. Bernstein has seen it all throughout his career. Buying investments with borrowed money. Chasing past performance. Overestimating one's own risk tolerance. Listening to cable news. These are just a few of the many mistakes he has witnessed smart, serious investors make, to the peril of their portfolios. Add to these behavioral errors such economic factors as deflation, sudden stock declines, soaring inflation, and the like--and investing can seem like something to be avoided at all costs. But with the right discipline and knowledge, you can build and manage an impressive portfolio. It all comes down to understanding four key pillars:

  • Theory: Risk and return go hand in hand--you can't make money without risk
  • History: Understand past markets to understand today's markets
  • Psychology: Avoid the most common behavioral mistakes that tank portfolios
  • Business: The cost of investment services can be high--unreasonably high

After taking you on a deep dive into each of these topics, Bernstein walks you through the process of designing and maintaining a powerful portfolio.

Times have changed. Economies have changed. And markets are ever-changing. But sound investing principles haven't changed. Use The Four Pillars of Investing to stay a step ahead of your investing peers and build a portfolio to be proud of.

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About the Book

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.


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Product Details
  • ISBN-13: 9780071747059
  • Publisher: McGraw-Hill Education
  • Publisher Imprint: Mcgraw-Hill Education
  • Depth: 25
  • Height: 235 mm
  • No of Pages: 352
  • Series Title: English
  • Sub Title: Lessons for Building a Winning Portfolio
  • Width: 163 mm
  • ISBN-10: 0071747052
  • Publisher Date: 08 Jul 2010
  • Binding: Hardback
  • Edition: 1
  • Language: English
  • Returnable: Y
  • Spine Width: 30 mm
  • Weight: 640 gr


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