The Only Guide To Winning Investment Strategy

Submitted by Book Library on 19 March, 2010 - 21:31

Investment professional Larry E. Swedroe describes the crucial difference between "active" and "passive" mutual funds, and tells you how you can win the investment game through long-term investments in such indexes as the S&P 500 instead of through the active buying and selling of stocks.

A revised and updated edition of an investment classic, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today to a Winning Investment Strategy You'll Ever Need remains clear, understandable, and effective. This edition contains a new chapter comparing index funds, ETFs, and passive asset class funds, an expanded section on portfolio care and maintenance, the addition of Swedroe's 15 Rules of Prudent Investing, and much more. In clear language, Swedroe shows how the newer index mutual funds out-earn, out-perform, and out-compound the older funds, and how to select a balance "passive" portfolio for the long hail that will repay you many times over. This indispensable book also provides you with valuable information about:

The efficiency of markets today. The five factors that determine expected returns of a balanced equity and fixed income portfolio
Important facts about volatility, return, and risk
Six steps to building a diversified portfolio using Modern Portfolio.

Positive Review of Book

No doubt you've heard many times something to the effect: "this is the only book you'll need to learn how to invest." Well, this time believe it-this is the only book you'll need. If ever we reach the point where we have private accounts in Social Security, The Only Guide To Winning Investment Strategy should be required reading for everyone before they undertake their private account. I note that all of the reviews on Amazon of Larry's latest book are positive-and with good reason. My endorsement of this book is twofold: (1) it is the strategy that I use, and (2) I use this book as my main text in a college investments course called Applied Investments, where I teach students how to take control of their own personal investments and not be dependent on brokers/financial advisors. Being a Finance professor I was well aware of the evidence regarding active management v. passive investing, and when I first began looking for books for my course, I did a lot of reading of books by such people as William Bernstein, Burton Malkiel, and John Bogle of Vanguard-all of whom are ardent proponents of passive investing. All of these people (as well as others) regularly cited Larry Swedroe's books and articles, so I decided to go straight to the horse's mouth, so to speak. What a great find!

Mr. Swedroe writes with a clarity that is rare, especially in Finance. In addition, he backs up all of his positions with academic research, which of course, makes it an excellent book to use in an academic setting. But don't be put off by this-he doesn't let the research discussions get in the way of what he's trying to explain. He takes you through the evidence and then shows you exactly how to earn market rates of return through the application of passive investing, asset allocation, and rebalancing. It's all in this book. If you follow what he teaches you to do, your financial house will be in order, and at the end of your investment horizon, your will be much better off.

Negative Review of Book

I have been investing for the past several years now... I am a Credit Analyst for a Bank is South Florida. Most of the books are getting good reviews and I wonder why.. Are people placing these reviews related to the Authors? I am glad that I did not buy The Only Guide To Winning Investment Strategy. I rented it at the local library... It's too basic... I read the section on how to buy bonds and noting good was covered there.. After reading just that section (which by the was is most important since you don’t want to over pay for bonds) I am sending it back to the library.. As long as you buy bonds when interest rates are high and the U.S. economic growth is slowing they are good buys... You will get interest payments and once interest rates start to come down (since the FED will lower rates to provide a soft landing to the economy) you will get a capital gain as well.. I am going to rent another book "The Bond Book" to see if it's any better than this one.. There is allot information at PIMCO site (FREE) related to how to buy bonds and build a bond investment strategy.

Author Biography

New York native Larry E. Swedroe is the author of What Wall Street Doesn't Want You To Know, Rational Investing In Irrational Times. He lives in St. Louis, Missouri, where he is a principal in the firm Buckingham Asset Management. Swedroe has been praised by investment titan John C. Bogle and financial correspondent Jane Bryant Quinn for his leadership on Index fund investing.

Table of Contents

  1. Chapter 1: Why Individual Investors Play the Loser's Game
  2. Chapter 2: Active Portfolio Management Is a Loser's Game
  3. Chapter 3: Efficient Markets I - Information and Cost
  4. Chapter 4: Efficient Markets II - Risk
  5. Chapter 5: The Five-Factor Model
  6. Chapter 6: Volatility, Return, and Risk
  7. Chapter 7: Six Steps to a Diversified Portfolio - Using Modern Portfolio Theory
  8. Chapter 8: How to Build a Model Portfolio
  9. Chapter 9: Index Funds, Passive Asset Class Funds, and ETFs
  10. Chapter 10: The Care and Maintenance of the Portfolio
  11. Chapter 11: Implementing the Winning Strategy

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