The Informed Investor: A Hype-Free Guide to Constructing a Sound Financial Portfolio

by Frank Armstrong III

Most people are scared stiff by investment risk. But what most people don't know is that the biggest risk is simply investor behavior. Irrational and fearful, investors routinely chase after investment rainbows offering high returns with zero risk . . . or sell off stocks in a panic when the market is down . . . or hoard their money in T-bills, which historically have just barely outpaced inflation. The only way to eliminate such self-destructive behavior is to get hard facts on how the stock market really works. Fortunately, anyone can learn -- not just the analysts on Wall Street -- with The Informed Investor. Packed with eye-opening charts and graphs, this powerful book shows how to develop an investment strategy that yields the highest return with the lowest risk. The Informed Investor: * Replaces ""voodoo investing"" methods with proven real-world strategies and groundbreaking academic research * Provides a thorough education in financial economics * Explains how to allocate assets to achieve specific goals * Simplifies difficult subjects with clear language and straight-shooting advice

Genres: Finance, Money

320 pages, Paperback

First published April 22, 2002

Reviews

[Joy]

Library book, (the price is right). Very easy read, have read a few on this topic, have just started this one. Good info that I didn't know before, demystifies aspects of this arena for a novice.

[Elizabeth Lund]

Better than I expected. Did a good job of summarizing important research studies and convinced me that modern portfolio theory may be a good way to go.