The Quest for Alpha: The Holy Grail of Investing (Bloomberg) and over one million other books are available for Amazon Kindle. Learn more
Qty:1
  • List Price: $27.95
  • Save: $9.30 (33%)
FREE Shipping on orders over $35.
Only 11 left in stock (more on the way).
Ships from and sold by Amazon.com.
Gift-wrap available.
The Quest for Alpha: The ... has been added to your Cart
Condition: Used: Good
Comment: Good readable copy. Worn edges and covers and may have small creases. Otherwise item is in good condition! Ex-library book. May have typical labels and markings.
Have one to sell? Sell on Amazon
Flip to back Flip to front
Listen Playing... Paused   You're listening to a sample of the Audible audio edition.
Learn more
See all 3 images

The Quest for Alpha: The Holy Grail of Investing Hardcover – February 8, 2011

30 customer reviews

See all 2 formats and editions Hide other formats and editions
Amazon Price New from Used from
Kindle
"Please retry"
Hardcover
"Please retry"
$18.65
$13.29 $4.17

Best Books of the Year So Far
Best Books of the Year So Far
Looking for something great to read? Browse our editors' picks for 2015's Best Books of the Year So Far in fiction, nonfiction, mysteries, children's books, and much more.
$18.65 FREE Shipping on orders over $35. Only 11 left in stock (more on the way). Ships from and sold by Amazon.com. Gift-wrap available.

Frequently Bought Together

The Quest for Alpha: The Holy Grail of Investing + The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) (Collins Business Essentials)
Price for both: $31.90

Buy the selected items together


Editorial Reviews

Review

“As I noted recently, success in investing is somewhat counterintuitive, and requires most investors to set aside their pre-conceived notions of how to build a portfolio that will allow them to reach their goals. The task is made all the harder because the vast majority of the participants in the financial services industry spend hundreds of millions of dollars annually reinforcing the myth of active management. Fortunately for investors, experts like Larry Swedroe are hard at work pointing out the fallacies of those myths, while also detailing the undeniable logic and mathematics that underpin a passive approach. The Quest for Alpha is a wonderful addition to that effort, and investors will be well-rewarded by reading it and acting upon its wisdom.”
— Nathan Hale, moneywatch.com, March 2011

From the Inside Flap

King Arthur and his court pursued the Holy Grail, the mythical cup or dish used by Jesus at the Last Supper.The financial equivalent of the pursuit of the Holy Grail is the quest for the money managers who will deliver alpha—returns above the appropriate risk-adjusted benchmark. The quest for alpha is based on the theory that the markets are inefficient, and smart people working diligently can discover pricing errors the market makes. But there is a competing theory based on about sixty years of academic research. Its premise is that markets are highly efficient—the market price of a security is the best estimate of the right price. If markets are highly efficient, efforts to outperform are unlikely to prove productive after the expenses of the efforts. So which theory is correct?

In The Quest for Alpha, Larry Swedroe presents research, data, and advice from some legendary market gurus to show that it is extremely difficult to outperform the market. Examining the evidence from academic studies on mutual funds, pension plans, hedge funds, private equity/venture capital, individual investors, and behavioral finance, he demonstrates that the markets are indeed highly efficient. Swedroe then explains why investors should instead focus on asset allocation, fund construction, costs, tax efficiency, and the building of a globally diversified portfolio that minimizes, if not eliminates, the taking of idiosyncratic, uncompensated risks.

And to those who ask, "But how do you explain Warren Buffett?" Swedroe's answer is simple. "I tell them if they see Warren Buffett when they look in the mirror, go ahead and seek the holy grail of alpha," he says. "If they don't, give up the quest and play the winner's game."

NO_CONTENT_IN_FEATURE

Best Books of the Month
Best Books of the Month
Want to know our Editors' picks for the best books of the month? Browse Best Books of the Month, featuring our favorite new books in more than a dozen categories.

Product Details

  • Hardcover: 208 pages
  • Publisher: Bloomberg Press; 1 edition (February 8, 2011)
  • Language: English
  • ISBN-10: 0470926546
  • ISBN-13: 978-0470926543
  • Product Dimensions: 5.8 x 0.8 x 8.8 inches
  • Shipping Weight: 12.8 ounces (View shipping rates and policies)
  • Average Customer Review: 4.6 out of 5 stars  See all reviews (30 customer reviews)
  • Amazon Best Sellers Rank: #593,824 in Books (See Top 100 in Books)

More About the Author

Larry E. Swedroe is director of research for Buckingham and the BAM ALLIANCE. Larry holds an MBA in finance and investment from New York University and a bachelor's degree in finance from Baruch College.

Larry was among the first authors to publish a book that explained the science of investing in layman's terms, "The Only Guide to a Winning Investment Strategy You'll Ever Need." He has since authored seven more books and co-authored six books about investing. Larry is a sought-after speaker and prolific writer, and he contributes weekly to multiple national outlets including ETF.com.

Customer Reviews

Most Helpful Customer Reviews

28 of 28 people found the following review helpful By Terry I. on June 4, 2011
Format: Hardcover Verified Purchase
The Quest for Alpha presents a thorough and convincing viewpoint that passive management is preferable to active management. Mission accomplished. However, much of this was presented in previous books by the author and I did not find a new book on that subject to be that valuable. I have no dispute with the premise, examples and conclusions. If your only reason for studying this book is to make a decision on passive versus active investing, then this book deserves 5 stars.

However, I was hoping for some updated information in how to proceed creating an investment portfolio, and this book did not satisfy that need. It does not address evaluating when a passive approach might not provide exposure to the market segment you want.

Previous books by Swedroe, specifically Winning Bond Strategy(2006) and Winning Investment Strategy(2005) are much better but now getting a little dated for the current investment climate. I was hoping for some updated guidelines on asset allocation for equity and fixed income investments. However, in the absence of an update, these books are the best I have come across and I recommend them highly. For instance, Winning Investment Strategy takes the asset allocation for equities a step further than most sources and delves into the allocation for small and large capitalization equities, including value vs growth equities. It also includes allocations for international equities, emerging markets, and REITs. Winning Bond Strategy is not as useful because it does not include specific recommendations for the investments in a fixed income portion of a portfolio, but it still provides a good explanation of the various options.
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
30 of 32 people found the following review helpful By Philip Stein on April 3, 2011
Format: Hardcover
Beginning with the Cowles Commission in the early 1930s, academics have been searching for ways to identify money managers who could persistently generate above-market returns. Eighty years have passed and they are still searching. In fact, many have concluded that market-beating managers are about as common as four-leaf clovers, and the very few who do succeed cannot be identified in advance. With the advent of the Efficient Market Hypothesis in the 1960s, emphasis shifted to understanding why the market is so hard to beat. This research has provided the intellectual foundation for passive investing.

In his new book, "The Quest for Alpha", author Larry Swedroe highlights many studies performed over the past several decades which overwhelmingly reach the same conclusion: returns in excess of market averages (alpha), net of expenses, are exceedingly difficult to achieve over long periods of time, and any attempts to beat the market will likely result in disappointment. It is hard not to draw the same conclusion yourself after reading this book. Apparently, researchers have not found evidence of skilled alpha-generating managers after studying mutual funds, pension plans, private equity/venture capital, and, yes, hedge funds. Mr. Swedroe admonishes us to not become too enamored with the mystique of hedge funds. Hedge fund performance is reported voluntarily and it is not likely that funds destined for extinction will bother reporting sub-par returns. This makes data on hedge fund performance exceedingly biased. Yet in spite of this bias, the long-term return of the average hedge fund is still nothing to write home about.
Read more ›
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
18 of 21 people found the following review helpful By Mark W. Cooper on January 30, 2011
Format: Kindle Edition Verified Purchase
First of all; I am a Larry Swedroe fan. I have read every one of his books and follow his blog. I believe he is one of the top financial/investing writers for the small investor. I refer to his prior book "The Only Guide to Alternative Investments" on a regular basis.
If you have read some of his prior books, this is a re-hash of his general principles of investing... know the risks of your investments, financial and economic predictions are bunk, costs matter.
If you haven't read his prior books, a nice review of the financial industry; how investor psychology leads us astray. Fun to read. If you want specific investing advice, look at some his other publications.
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
7 of 9 people found the following review helpful By Dave P on February 6, 2011
Format: Kindle Edition
Like others I have read most all of Larry's books and enjoy them all. I agree that there is nothing really new here compared to his other books, but it is an outstanding compilation of information supporting the case for passive investing in the presence of highly efficient markets. My favorite quality of the book is that all my favorite quotes, stories, aphorisms about investing are woven into the book to create a truly enjoyable read. The book is full of quotes from professionals and academics. After showing the futility of beating the market by showing us that mutual funds, pension plans, and hedge funds cant do it, the book turns to the relatively new field of behavioral finance to show us that the biggest enemy to our investing success is likely in the mirror.
He then shows what the winning strategy is with passive investing, tax loss harvesting, rebalancing. He clearly shows that indexing / passive investing is not at all settling for average. It is the way smart money invests and is superior. Larry's book is a truly enjoyable and important read for anyone interested in improving their financial future.
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again

Most Recent Customer Reviews

Set up an Amazon Giveaway

Amazon Giveaway allows you to run promotional giveaways in order to create buzz, reward your audience, and attract new followers and customers. Learn more
The Quest for Alpha: The Holy Grail of Investing
This item: The Quest for Alpha: The Holy Grail of Investing
Price: $18.65
Ships from and sold by Amazon.com