Review: 'The four pillars of investing'
Fri 16 April 2010
, Alberta Opoku, Leap
There are hundreds of thousands of books about money: from making it to losing it. With ‘The four pillars of investing’ any independent investor can construct a sensible investment portfolio.
If you’re planning on taking your investments into your own hands, William Bernstein’s The four pillars of investing: lessons for building a winning portfolio is an absolute must-read. Truth be said, I was reluctant to pick this book, knowing it is scientifically proven investment advice – what to buy and when to buy - has no added value. But I couldn’t have done myself a bigger favour!
Dr Bernstein explains the fundamental concepts, the four pillars, upon which successful investments are built. Bernstein starts with the foundations of classic financial theory and works his way to the practicalities of assembling an effective portfolio with a step-by-step programme for realising long-term success. It is this holistic approach that makes The four pillars of investing such a great book.
These are the fascinating fundamentals Bernstein shares with his readers:
The Theory of Investing: Don’t 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.
About the author
Dr William Bernstein has become a grassroots hero to independent investors everywhere. He has made a name for himself by questioning the value of Wall Street wisdom, skewering the recommendations of self-serving stockbrokers, and showing legions of investors how to successfully manage their own investments smartly.
Title: The Four Pillars of Investing: lessons for building a winning portfolio (240 pages, hardcover)
Author: William Bernstein
Publisher: McGraw Hill (2002)
About the author
Columns from this author
Columns in Money
- The remedies for capitalism (25-04-2011, Paul Polman)
- Capitalism for the long term (19-04-2011, Dominic Barton, McKinsey/ Harvard Business Review)
- Review: 'The four pillars of investing' (16-04-2010, Alberta Opoku)
- ‘The Total Money Makeover’ (26-02-2010, Alberta Opoku)
- Make your money work at home too (21-12-2009, Marie-Pauline Luger & Dorieke Mulder)
- A tricky question (05-09-2009, Henriëtte Prast)
Articles in Money
- Are Men the Real Winners with the Rise of Female Breadwinners? (09-04-2012)
- Wage gap still there, unless you are a house-sitter (26-03-2012)
- Emotion Analytics: The Missing Ingredient in Risk Management (13-02-2012)
- Mine's Bigger than Yours: Challenges of Being a Female Breadwinner (05-12-2011)
- 10 Things Baby Boomers Won't Tell you (21-11-2011)
- Negotiate for…your family, friends, colleagues (15-11-2011)
- 5 Tips to remember next time you negotiate a raise (07-11-2011)
- Female leaders share advice at Wall Street Conference (24-10-2011)
- It - literally - doesn't pay to be nice (05-09-2011)
- Effect van loopbaanonderbreking op salaris vrouwen (18-07-2011)
- Aandeel e-shoppers in 2010 verder gestegen (04-07-2011)
- Leuk werk? Alleen geld telt... (27-06-2012)
- Serious Play: The Business of Social Currency (17-05-2011)
- Banksparen steeds populairder (02-05-2011)
- Remaking Portugal Telecom: An interview with CEO Zeinal Bava (03-05-2011)
- Inkomen Japanse vrouwen passeert dat van mannen (19-04-2011)
- Nu gaan vrouwen de best betaalde banen inpikken (11-04-2011)
- Too expensive? Don’t listen to that little voice (29-03-2011)
- Bedrijven scoren beter met vrouwen (22-03-2011)
- Vrouwen werken meer voor minder (15-03-2011)
- Whose money is it? (25-01-2011)
- Ladies, Should You Ask For It? (25-01-2011)
- Budgets are sexy (18-01-2011)
- Young British women reverse pay gap (12-12-2010)
- Lehman Sisters Wouldn't Have Failed (07-12-2010)
- Chocolate will be the future caviar (20-11-2010)
- Banking on gender diversity (08-11-2010)
- European employees: ‘management are fraudsters’ (19-05-2010)
- Women and money (03-04-2010)
- Making cash with ‘socialnomics’ (29-03-2010)
- ‘Can you afford your life?’ (25-03-2010)
- Review: The four pillars of investing (23-03-2010)
- Beat the tax office to it and start now! (09-03-2010)
- ‘Every quality has its price’ (02-02-2010)
- Suze Orman’s 2010 personal finance tips (22-01-2010)
- Success in your work, success in your wallet... (01-01-2010)
- Poll: I manage My Money at home... (01-01-2010)
- Your money and you: (01-01-2010)
- My money… (01-01-2010)