The Four Pillars of Investing: Lessons for Building a Winning Portfolio
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 ...more
The book contains statistics, tables, graphs, analogies, examples, and theo ...more
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 and more eff ...more
Pillar 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 History
The more history you know, the better prepared you'll be ...more
As the book moves ...more
Sound, sensible advice from a hero to frustrated investors everywhere
William Bernstein's The Four Pillars of Investing gives investors the tools they need to construct top-returning portfolios--without the help of a financial adviser. In a relaxed, nonthreatening style, Dr. Bernstein provides a distinctive blend of market history, investing theory, and behavioral finance, one designed to help every investor become more self-sufficient and make better-informed investment decisions. The 4 Pillar...more
Bernstein is a great writer and I will definitely be checking out his other books. He says early on that ...more
Take this book in small doses so you can ruminate on the concepts. I'm a huge fan of statistics, data, and the wisdom that comes from thoughtfully analyzing these ...more
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 ...more