Suitable for the self-sufficient investor, this title offers the know-how and tools needed to construct top-returning portfolios. Since its initial publication, "The Four Pillars of Investing" has become a staple for the independent-minded investor looking to make better-informed investment decisions. Written by noted financial expert and neurologist William Bernstein, this updated and expanded edition of the investing classic delivers a step-by-step program provides the knowledge and tools for achieving long-term profitability. Bernstein bridges the four fundamental topics successful investors use to generate exceptional profits on a consistent basis: The Theory of Investing - 'Do not expect high returns without risks'. The History of Investing: 'About once every generation, the markets go barking mad. If you are unprepared, you are sure to fail'. The Psychology of Investing: 'Identify the era's conventional wisdom and assume that it is wrong. More often than not, it is'. The Business of Investing: 'The stockbroker services his clients in the same way that Bonnie and Clyde serviced banks'. From the essential soundness of classic portfolio theory through the inherent wisdom of investing in multiple asset classes, "The Four Pillars of Investing" provides a distinctive blend of market history, investing theory, and behavioral finance to help you become a successful self-sufficient investor. A sampling of topics found inside "The Four Pillars of Investing" include: The Market is Smarter than You Are; The Perfect Portfolio; Misbehavior; Behavioral Therapy; 'Your Broker is Not Your Buddy' (and Neither is Your Mutual Fund); and, Defining Your Mix.

Table of Contents

Preface; Introduction; Pillar One: The Theory of Investing; Chapter 1. No Guts, No Glory; Chapter 2. Measuring the Beast; Chapter 3. The Market is Smarter Than you Are; Chapter 4. The Perfect Portfolio; Pillar Two: The History of Investing; Chapter 5. Tops; Chapter 6. Bottoms; Pillar Three: The Psychology of Investing; Chapter 7. Misbehavior; Chapter 8. Behavioral Therapy; Pillar Four: The Business of Investing; Chapter 9. Your Broker is Not Your Buddy; Chapter 10. Neither is Your Mutual Fund; Chapter 11. Oliver Stone meets Wall Street: Investment Strategy; Chapter 12. Will you Have Enough?; Chapter 13. Defining Your Mix; Chapter 14. Getting Starts, Keeping it Going; Chapter 15. A Final Word

About the Author

William J. Bernstein, Ph.D., M.D., is a neurologist and the cofounder of the investment management firm Efficient Frontier Advisors. He is the author of three finance books--The Intelligent Asset Allocator, The Four Pillars of Investing, and The Investor's Manifesto--and two volumes of economic history, The Birth of Plenty and A Splendid Exchange. Bernstein is currently working on a history book exploring the effects of access to technology on human relations and politics.