Customer Reviews

Why Do Bad Investments Happen to Smart People?

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As an eighty four year old physician-scientist (Ph.D. , M.D.) who has experienced numerous recessions and a few bull markets, I feel quite capable of critiqueing Dr. Schulman's book. Yes, I was successful and devoted in my prrofession, but i relied on others for financial advice without devoting enough of my personal efforts to try to understand some of the fundamental arithmatic behind making the best investment choices. When I started to make enough money to save I believe Dr. Schulman's book would have been tremendously helpful and I could have avoided many pitfalls. I can attribute most of these to believing friends and financial advisors had some kind of special formula to be above average investors. Dr, Schulman makes no concessions about how important personal analysis and involvement is and provides straight forward advice about how to do this.
I recommend this book to anyone anxious to change their luck or who has the opportunity to build a solid plan for secure financial health. I have purchased additional copies for my grandchildren along with the caveat that strict discipline must be used to avoid static from financial advisors anxious to market incompatible products.

This slim and direct book does a great service for all the smart people who have investable assets but don't have the time or inclination to learn how to invest wisely while minimizing advisory or management fees that take a big chunk from your returns. Dr. Schulman is a world famous physician and entrepreneur who brings his laser focus and intelligence to bear on an investment strategy that is both simple and highly effective. If you lack the confidence to manage your own investments, follow this book's advice to optimize your investment returns.

Dr. Schulman's Book "Why Do Bad Investments Happen to Smart People?" is a useful resource for young professionals and those that are just starting to consider how to invest. The commonsense approach to investing provides a good starting point for those considering whether a passive or active investing style is right for them. I found it timely for me personally as it helped me decide that a passive, index fund approach to investing fits my present needs. The book also provides ideas from successful investors like Warren Buffett and suggests books by or about them that will help interested investors expand their knowledge.

Dr. Schulman's concise book should be on the gift list for any graduate who needs to plan well for their financial future. And mandatory reading for those of us who didn't have the insight to start young. He clearly outlines the benefits of tax-deferred compounding and fee minimization for improving returns on investment. Chapter 4 detailing the core passive investment plan through a stock index fund will strike many as overly cautious. However, as I can personally attest having implemented something similar, I now meet the SEC definition of rich and avoided the pitfalls of the many "bubbles" over the last few decades. The subsequent chapters on selecting "good" stock clarify a process that investment advisors would prefer we pay them to do. My New Year's resolution is put these sections to use. I am optimistic it will be as successful for me as following the initial strategy was for building a sound financial retirement portfolio.