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 common ...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
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
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
A better name would be "Four Things Everyone Should Know About Investing". This name is so much better that I will refer to this book as FTESKAI for the rest of the review.
FTESKAI is not a book for someone who just wants to be told where ...more
What I enjoyed most about the book was the authors ability to cut ...more
The main advise in the book is to go with lowest fee possible for biggest market spread possible (index funds). To expect some very bad years and be happy about them since that allows for higher ...more
Bernstein has done a magnificent job with his four theories. Whether you’re just starting out on your portfolio or have roughed it out as a seasoned investor, you will definitely take something from these four pillars.
The first pillar is the need to know certain inalienable investment theories. Like how great returns m ...more
The author very carefully explains the history, theory, psychology and business of investing. He really nails home that low-cost index funds are the way to go and why. He explains why "buying low and selling high" is much harder than it sounds (and how most investors don't follow this advice ...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 physician, so he brings a scientific mindset that I c ...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