Top critical review
22 people found this helpful
on January 24, 2003
The first two-thirds of the book is an extended, strident, rant on all the vile evils of all forms of investment other than index funds. While the information on the drawbacks and imperfections is mostly accurate (and mostly well known), the authors are unwilling to just present it clearly - they insist on beating you over the head with it.
The authors are pure deciples of the strongest version of Modern Portfolio Theory. Untroubled by the reality of frequent, serious mispricings in the market, they insist that is is impossible to make money buying individual stocks.
They also ignore what I feel is the major drawback of index investing: it effectively forces you to take large positions in very large cap companies in whose future you may have serious doubts. Think about what's happened to the prices of GE, IBM, Intel, Microsoft and the money-center banks.
There are many better, far less strident books that provide the same information.