The classic guide to
constructing a solid portfolio—
with out a financial advisor!
“With relatively little effort, you
ca... read full description
reviews
Jan 26, 2009
Mark
rated it: 
Re-reading this in light of the money meltdown.
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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 hearin More...
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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 hearin More...
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Feb 20, 2010
Chad
rated it: 
An investment adviser and I were talking about the financial books we had read, and he highly recommended this book as the next on my list. I can see why! Instead of immediately offering advice on how to invest, Bernstein takes a step back and makes sure you understand market theory, the history of the markets, the role of psychology in choosing investments, and the very real impact of expenses and the media's influence.
The book contains statistics, tables, graphs, analogies, exampl More...
The book contains statistics, tables, graphs, analogies, exampl More...
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Dec 05, 2011
Christian
rated it:
Best book I've read on taking the long view on investing. Most personal finance books are sell-side anecdotes about investing $100 at the market bottom in 1932 or getting a 15% annualized return over 30 years. Bernstein gives your more conservative instincts plenty of ammunition on how to invest. The mantra is in hindsight there will always have been a perfect investment strategy. In the present you have no idea what that will be. He breaks up success into four pillers: theory, psychology,
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Jan 21, 2009
Mark
rated it:
This is an extremely practical book on saving and investing. It gives a brief history of investing, going back around 400 years to give a good feel for how risk and return work. It covers the basics of calculating returns, and how to think about money over time. It teaches the simple mechanics of creating an investment plan with several good real life scenarios. Most importantly, it gives insight to how the financial industry and financial media work. The motivations and methods of both are laid
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Jun 05, 2008
Mark
rated it:
a very good book with lots of good advice about investing with enough technical data to have relevance but written well enough that a novice can understand. He breaks up the fundamentals of investing into four main parts with the last part giving an overall view about how to set up your portfolio. The first part acknowledges that riskier investments will have higher returns over the long haul and safer investments will have lower returns. He scans history for examples and notes that the US is a
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Jun 20, 2008
Krenzel
rated it:
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 the more you learn, the more confused 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:
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Mar 16, 2010
Gary
rated it:
An excellent one-book summary of how to invest for the long term. But Bernstein's great insight was how to use portfolio theory. Unfortunately, nobody understood his book on that. They didn't have enough background. Here, he provides the background, but little portfolio theory. And I already had the background by the time I got to his book. But if you don't, you can learn much here: risk is rewarded, history has patterns, you and your broker are your own worst enemies, etc.
Mar 17, 2010
Miles
rated it:
Probably one of the best books on investing ever written. Easy to comprehend, follow and apply. I’m in the investment industry and this is a must read for anyone that actively participates in the equities market with any regularity. I particularly like the chapter on “bubbles” and you’ll recognize why after having gone through the recent financial meltdowns. This book is also one that a person can revisit over and over due to its timelessness.
Oct 26, 2008
Trevor
rated it:
I strongly recommend this book! It's great for anyone who wants to really understand how markets works and how to best approach the world of investing. However, to really get the most out of this book I would recommend having at least some knowledge of basic investment options before reading. It would probably be a good idea to read a book like "The Bogleheads' Guide to Investing" first because it introduces investment concepts such as what are stocks, mutual funds, bonds, CD's, index
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Jul 19, 2009
Jonathan
rated it:
An excellent basic read which goes through the most fundamental principles of portfolio management, as advertised. Non-technical. Doesn't do a lot to discuss assessment or valuation techniques -- it mostly prescribes a passive strategy.
Dec 30, 2010
Klaus
rated it:
Great common-sense guidelines for investing. Here is a summary: 1) What goes up must come down. 2) There is no reward without risk. 3) You are your own worst enemy. 4) No, actually your broker is your worst enemy.
Jun 02, 2008
Todd
rated it:
Cheesy title, great book. I'm in the middle of his Intelligent Asset Allocator, which has a lot more math.
Here are the four pillars to save you some time:
1. Theory (how to price, why you should index)
2. History (Did you know the interest rate in ancient rome was 4%? You should.)
3. Psychology (ignore your instincts and what people say at dinner parties)
4. Business (stock brokers and business press -- not your friends)
Mr. Bernstein trained as a physi More...
Here are the four pillars to save you some time:
1. Theory (how to price, why you should index)
2. History (Did you know the interest rate in ancient rome was 4%? You should.)
3. Psychology (ignore your instincts and what people say at dinner parties)
4. Business (stock brokers and business press -- not your friends)
Mr. Bernstein trained as a physi More...
Feb 08, 2010
Ross
rated it:
Definitely recommended if you want to become rich. Joking aside, very sound investment advice delivered in a very readable form.
Feb 05, 2011
Ned
rated it: 
Very good book for the average person/investor. Bernstein will convince you not to pick stock on your own.
Apr 10, 2010
Wells
rated it:
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.
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Mar 23, 2009
Elizabeth
rated it:
A great overview of smart investing and avoiding sheep-like behavior.
Oct 06, 2011
Mark
rated it:
For anyone who follows the advice on the "Sound Investing" podcast, or Clark Howard's investment guides, the main points of this book re-affirm those beliefs (value over growth, small-cap over large-cap, keeping a well diversified portfolio, etc). The details however, can be overwhelming at first. I can see myself with this book, after having read it for the first time, wanting to research more on my own, and then re-reading it in the future to appreciate the finer details.
Feb 24, 2010
Kurt
rated it:
This was a great book. The first section was tough to get through but it was necessary to make it through to understand the whole premise. Recommend it and I plan to use it for investment advice.
Aug 13, 2007
Nathaniel
rated it:
Another excellent addition to the library of the long-term index investor, this work present a fascinating history of financial markets, both worldwide and in the U.S. in particular. Bernstein then moves on to provide practical but general investing advice, making insightful suggestions and encouraging the reader to adopt an indexing approach. A bit academic in places, this is not a good starter work for someone interested in investing.
Mar 25, 2008
Harland
rated it:
Bernstein is a former medical doctor who decided that it was somehow easier to bring common sense and intellectual flair to personal finance than perform neurosurgery. Fortunately for him, most of the readers will probably already be adherents to the Vanguard/Boglehead philosophy of investing: keep costs low, favor a passive strategy employing index funds where possible, and live well within your means.
Oct 05, 2011
Leah
rated it:
This has definitely earned a place on my bookshelf for a long time to come.
Apr 27, 2011
Sarah
rated it:
Definitely not for the faint of heart - some chapters are a bit technical. But very educational and worth reading.
Dec 17, 2009
Junior
rated it:
I really enjoyed this book, but think I would have been a bit lost if I hadn't read some other basic investing books beforehand, not tons, just a couple like a Dummies Guide, or Bogle's Little Book...,etc. Wonderfully full of academic research and examples of index investing.
Aug 07, 2008
Holly
rated it:
Excellent book on investing! I think this book is one that everyone who manages their own finances should read and all financial advisers should read as well! Highly recommend! I think this will be an excellent reference book to keep on my shelf.
Jul 01, 2008
Bpeterik
rated it:
A bit dense, but not overwhelmingly so. Definitely written for those without a finance background, but helps to read in small chunks. A great overall picture of investing that dips pretty seriously into the easily digested technical/historical stuff.
Feb 07, 2008
Steve
rated it:
The mutual fund industry is screwing us big time. Read this book, and his earlier one, The Intelligent Asset Allocator, to get the real story and what you can do to become a smarter investor.
Oct 03, 2011
Only read about a quarter of this book. Might go back to it for references on specific things as the chapters are clearly delineated.
Sep 25, 2009
Lowell
rated it:
This is the first book investors should read. Read Bernstein's first book, "The Intelligent Asset Allocator" second.
