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THE INVESTOR'S MANIFESTO

Book Description

A timeless approach to investing wisely over an investment lifetime

With the current market maelstrom as a background, this timely guide describes just how to plan a lifetime of investing, in good times and bad, discussing stocks and bonds as well as the relationship between risk and return.

Filled with in-depth insights and practical advice, The Investor's Manifesto will help you understand the nuts and bolts of executing a lifetime investment plan, including: how to survive dealing with the investment industry, the practical meaning of market efficiency, how much to save, how to maintain discipline in the face of panics and manias, and what vehicles to use to achieve financial security and freedom.

  • Written by bestselling author William J. Bernstein, well known for his insights on how individual investors can manage their personal wealth and retirement funds wisely

  • Examines how the financial landscape has radically altered in the past two years, and what investors should do about it

  • Contains practical insights that the everyday investor can understand

  • Focuses on the concept of Pascal's Wager-identifying and avoiding worst-case scenarios, and planning investment decisions on that basis

With The Investor's Manifesto as your guide, you'll quickly discover the timeless investment approaches that can put you in a better position to prosper over time.

Table of Contents

  1. Copyright
  2. Foreword
  3. Preface
    1. The Roadmap
  4. 1. A Brief History of Financial Time
    1. 1.1. In the Beginning
    2. 1.2. Near-Death in Venice
    3. 1.3. The Incredible Shrinking Risk Premium
    4. 1.4. Summary
  5. 2. The Nature of the Beast
    1. 2.1. Of Ravens and Returns
    2. 2.2. History versus Math
    3. 2.3. Mr. Gordon's Curious Equation
    4. 2.4. Home Sweet Home?
    5. 2.5. Adventures in Equity
    6. 2.6. Throwing Dice with God
    7. 2.7. Gene Fama Looks for Angles and Finds None
    8. 2.8. Sandbagged by a Superstar
    9. 2.9. Jack Bogle Outfoxes the Suits
    10. 2.10. It Is Better to Be Lucky Than Smart
    11. 2.11. Bond Funds: A Flatter Playing Field
    12. 2.12. Summary
  6. 3. The Nature of the Portfolio
    1. 3.1. Four Essential Preliminaries
    2. 3.2. The Asset Allocation Two-Step
    3. 3.3. With Luck, Zigs, and Zags
    4. 3.4. Chasing Rainbows
    5. 3.5. Summary
  7. 4. The Enemy in the Mirror
    1. 4.1. Inner Demons
    2. 4.2. Behaving Badly
      1. 4.2.1. We Crave Easy-to-Understand Narratives
      2. 4.2.2. We Want to Be Entertained
      3. 4.2.3. We Are Too Easily Frightened
      4. 4.2.4. We Make Too Many Analogies
      5. 4.2.5. We Extrapolate the Recent Past Too Far into the Future
      6. 4.2.6. We Are All Better Than Average
      7. 4.2.7. We Need to Keep Up with the Joneses
    3. 4.3. Bargain-Basement Psychotherapy
      1. 4.3.1. Beware of Glib Narrative Explanations
      2. 4.3.2. Dare to Be Dull
      3. 4.3.3. Get into Financial Shape
      4. 4.3.4. Stop Making Analogies
      5. 4.3.5. Relish the Randomness
      6. 4.3.6. You Do Not Live in Lake Wobegon
      7. 4.3.7. Mingle with the Masses
    4. 4.4. Summary
  8. 5. Muggers and Worse
    1. 5.1. The World's Largest Bad Neighborhood
    2. 5.2. The Fund Funhouse
    3. 5.3. Summary
  9. 6. Building Your Portfolio
    1. 6.1. Financial Planning for a Lifetime: The Basics
    2. 6.2. Saving for Retirement: Nuts and Bolts
    3. 6.3. How to Save: Dollar Cost Averaging and Value Averaging
    4. 6.4. Four Investors, Four Plans
      1. 6.4.1. Young Yvonne (No Assets, Just Starting to Save)
      2. 6.4.2. Sheltered Sam (All Assets in Retirement Accounts)
      3. 6.4.3. Taxable Ted (All Assets in a Taxable Account)
      4. 6.4.4. In-Between Ida (Assets Divided Between Retirement and Taxable Accounts)
    5. 6.5. The Rebalancing Question
    6. 6.6. Teach Your Children Well
    7. 6.7. Summary
  10. 7. The Name of the Game
    1. 7.1. Investment Theory and History: The Short Course
    2. 7.2. The Portfolio Theory of Everything
    3. 7.3. We Have Met the Enemy, and He Is Us
    4. 7.4. Heads I Win, Tails You Lose
    5. 7.5. Fire When Ready
  11. The Books You Need ... Aged Like Fine Wine
  12. Notes
    1. Preface
    2. Chapter 1: A Brief History of Financial Time
    3. Chapter 2: The Nature of the Beast
    4. Chapter 3: The Nature of the Portfolio
    5. Chapter 4: The Enemy in the Mirror
    6. Chapter 5: Muggers and Worse
    7. Chapter 6: Building Your Portfolio
  13. Acknowledgments
  14. About the Author