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

The Four Pillars of Investing Lessons for Building a Winning Portfolio The classic guide to constructing a solid portfolio with out a financial advisor With relatively little effort you can design and assemble an investment portfolio that because of its wide diversific

  • Title: The Four Pillars of Investing: Lessons for Building a Winning Portfolio
  • Author: William J. Bernstein
  • ISBN: null
  • Page: 156
  • Format: Kindle Edition
  • The classic guide to constructing a solid portfolio with out 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 common The classic guide to constructing a solid portfolio with out 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.

    One thought on “The Four Pillars of Investing: Lessons for Building a Winning Portfolio”

    1. 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, examples, and theo [...]

    2. 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: Should I invest in tot [...]

    3. Very interesting book, well written but it isn't for people who want a quick buck. I liked how informative this book was. I just didn't really learn anything new. But then there are no new things under the sun. If you are serious about investing your money, remember diversification, patience, spend less, forget about deceiving the market and remember no one can predict the future, no matter how their "track records" may indicate otherwise. Finance 101: Past performance isn't indicative of future [...]

    4. In short, Bernstein advocates wide diversification through a portfolio of passively managed index funds in different asset classes, and buy-and-hold for the long termPillar 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 HistoryThe more history you know, the better prepared you' [...]

    5. Bernstein argues that the successful investor must understand four essential content areas: the theory, history, psychology, and business of investing. Practically speaking, he argues that the best portfolios build on that understanding will be based on indexed mutual funds in several key asset classes.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 e [...]

    6. Re-reading this in light of the money meltdown. ----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 [...]

    7. This book exceeded my expectations. If Nassim Taleb were to write a book on investment advice early in his career that's probably what it would look like. The book covered some financial theory and history as well as offered very practical advice.

    8. 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.

    9. A very good book I'd recommend to anyone interested in investing. It covers all the fundamentals one should know to try to avoid making big mistakes. Though I do disagree with his assumption that the market is rational in that risk and return will always be proportionally related.

    10. This book started out well with the introduction and the history of the financial markets. One chapter of the book describe how the various financial intermediaries - brokers, fund houses and investment banks - all work to profit from the investors. It also shows that the basic role of financial press is marketing financial products and not providing information. William Bernstein correctly shows that the small investor always comes last in the hierarchy of the financial world.As the book moves [...]

    11. Sound, sensible advice from a hero to frustrated investors everywhereWilliam 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 Pill [...]

    12. Through the numerous anecdotes provided by financial market history such as the Dutch Tulip Bubble of the 1600s and the Great Depression of the 1930s, this book provides a broad overview and introductory education in finance and investing. This book is somewhat technical and will be especially appealing to the reader who enjoys mathematical and scientific explanations of financial concepts. More importantly, this book imparts some extremely important lessons onto the reader, such as; markets are [...]

    13. I've read a few books about investing, but this is 'hands down' the best I've encountered. There's a lot of books out there which slam fund managers, stock brokers and their ilk, and recommend a passive approach with index funds. Unlike that 'old news', this book goes further by explaining how to value an asset, how to construct a portfolio, and how to think about your retirement 'nest egg'. Bernstein is a great writer and I will definitely be checking out his other books. He says early on that [...]

    14. The four pillars: Theory of Investing (returns are directly linked to risk), the History of Investing (understand past performance to build a portfolio, not to chase returns), the Psychology of Investing (stay the course!), and the Business of Investing (long-term, low-cost index funds will statistically beat any actively managed plan).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 [...]

    15. William Bernstein does an excellent job of not only putting together a solid investing strategy. He doesn't hesitate to throw in numerous graphs and the occasional formula, but it is nothing the average person can't understand with careful reading. My favorite part about this book is that he takes the time to discuss implementing the strategy. He acknowledges that a person's financial situation may be less than ideal and works to provide numerous scenarios to overcome the challenges most investo [...]

    16. A really well written treatise on the basics of investing for those who didn't major in finance in college and don't want to wallow in stock analysis. The Four Pillars are: The Theory of Investing, which isn't rigorously theoretical; The History of Investing, knowing the lessons of history helps you avoid its errors; The Psychology of Investing, again not terribly psychological but it exposes the most invidious investing traps; The Business of Investing, the first chapter here is titled "Your Br [...]

    17. I listened to the audio book and I was expecting a serious financial tome but this book was delightful. The author covers some common topics in investing but does it in a humorous manner. He also offers some unique advice regarding performance of the stock market relative to bonds and REITs. I haven't studied REITs in depth but it appears that the author's advice provided in 2002 has held up very well up to 2016 and beyond.

    18. Bernstein provides excellent insight into the history of the financial markets and the psychology of investing. The guidance on setting up a portfolio is backed up by thorough explanations. He explains how to diversify and how to get started from nothing. He also teaches his to use value averaging as a mechanism to add to your investment portfolio and rebalance at the same time. Excellent financial advice. Must read!

    19. This book is a must read for anyone that will ever do investing. If you learn some of the basics about how and why you should invest then you can save quite a bit of money in the process. This book is practical and detailed and specific without being too much in the weeds of details. I loved this book. Wish there was a higher star rating I could've given it.

    20. One of the best investment books I've ever read. It did more to bring me peace of mind and security in the fact that index fund investing is the only way to go. It has been a spring board to other investment reading. I'll not pay someone to manage my assets which means I need to learn how to manage them myself. With tools like this, I'm move forward quite competently.

    21. What a fantastic book about investments and investment strategy. This is not a book for beginners but if you are looking for substance regarding investment strategy, this is an excellent book to read. Bernstein goes way back (Centuries!) to look at investments throughout time, not only the last 50 years. This gives you a good perspective regarding markets.Highly recommended.

    22. This is one of THE best books I have ever read on Investing. Following the more general introduction to Tony Robbins: Money Master the Game, I find this book goes even deeper and re-emphasizes how one should approach investing. Great book.

    23. I suck at investments. (and I work for a bank) I honestly don't feel like I know any more coming out of this book then I did going in. I think I am going to pick up Investing for Dummies I might learn a little more.

    24. I was particularly drawn to the history and psychology sections. And although the theory part was really boring for me, it was necessary with which to understand the rest of the book. I definitely think I'll refer back to this book from time to time.

    25. While this book contains plenty of useful and important advice, my one caveat is that the recommendations aren't aggressive enough for 20-somethings.

    26. I have read tons of books that are similar in type and technicals however this read is just amazing. Put it this way, this is the book that I will get my family to read.

    27. Buen libro al principio, sobre todo los 2 primeros pilares, los últimos capítulos ya me parecía que me querían vender algo. Le doy un 6.

    28. 相當值得一看的投資經典,讓我對投資有了全新的體會。更難得的是深入淺出的筆調讓人很容易理解。即使是跟非投資書籍比較,也是我近年看了最有收穫的書之一。

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