The Wealth Equation [Illustrated] [Hardcover]

Peter J. Tanous (Author), Michael Price (Author)

Book Description

Publication Date: January 22, 1999 | Series: New York Institute of Finance

Offering a complete investment plan, this work covers such areas as: defining your investment expectations; fearless investing; the importance of asset allocation; faith and investment process; intelligent speculation; avoiding mistakes; and market timing.

Editorial Reviews

Amazon.com Review

Having trouble developing a consistent and profitable investment strategy? Are your stocks really making you any money? If you find yourself asking these questions, then you may want to give Peter J. Tanous a try. In The Wealth Equation, Tanous, who also wrote Investment Gurus, promises to help you clean up your financial act with the help of "7 Master Keys to investment success." He bases his advice on his 35 years in the investment business and on interviews with investment superstars including Victor Niederhoffer, Gary Brinson, and Peter Bernstein. Tanous's equation for financial well-being begins by asking the reader to identify his or her investment-personality profile (e.g., "Are you conservative by nature or do you enjoy taking risks?"). Next, he leads the reader through the "7 Master Keys," which are essentially commonsense rules to investing (e.g., Master Key 1: Set Realistic Goals; Master Key 2: Understand Risk). Tanous's equation ends by stressing the importance of asset allocation and helping the reader build a portfolio based on his or her personality and investment-time horizon. Just about any investor should find something useful here, especially the frustrated investor who is looking for a more systematic approach to building a successful portfolio. --Harry C. Edwards

From Booklist

Tanous is the author of Investment Gurus (1997) and heads Lynx Investment Advisory. He suggests that there are three parts to the "wealth equation": gaining an understanding of one's own beliefs and attitudes about money; following a set of basic investment principles; and building a portfolio that reflects one's unique goals and the degree of risk one is willing to assume. To help understand one's relationship to money, Tanous introduces the MoneyQ profile. It was developed by "investment psychologist" Shoya Zichy and is based in part on Myers-Briggs personality test indicators. To discover core investment principles, Tanous conducted interviews with 100 money managers who represent the spectrum of "investment personalities" as identified by the MoneyQ. The result is Tanous' seven "master keys" of investment success. Finally, Tanous shows how to design a portfolio based on one's personal investment style and tolerance to risk. Although more rigorous than most beginning investment books, The Wealth Equation will fascinate the curious. David Rouse

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Product Details

• Hardcover: 320 pages
• Publisher: Prentice Hall Pr; illustrated edition edition (January 22, 1999)
• Language: English
• ISBN-10: 0735200688
• ISBN-13: 978-0735200685
• Product Dimensions: 9.1 x 5.9 x 0.8 inches
• Shipping Weight: 1.6 pounds
• Average Customer Review: 4.6 out of 5 stars  See all reviews (9 customer reviews)
• Amazon Best Sellers Rank: #1,889,097 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

3 of 3 people found the following review helpful:

5.0 out of 5 stars Very Insightful, June 5, 1999

By A Customer

This review is from: The Wealth Equation (Hardcover)

This is the first investing book I have read which goes beyond the typical "Are you Very Aggressive vs are you Conservative?" question. By using the personality profile quiz, one reaches a deeper understanding of their investing psyche. From this one can develop an investing plan which works for HIM/HER! My wife and I both took the quiz and were enlightened with our different attitudes towards money/investing.

The asset allocation pies are very helpful and much more specific than most I've seen. I highly recommend it.

3 of 3 people found the following review helpful:

5.0 out of 5 stars Plain English Formula for Creating Wealth, May 12, 1999

By A Customer

This review is from: The Wealth Equation (Hardcover)

I enjoyed Tanous's previous book, Investment Gurus, and this one lives up to what I would expect from him. Tanous speaks plain English and, unlike so many others, doesn't over-promise. Here is a formula for creating wealth in an intelligent, easy to follow, way which takes into account one's personal profile. I loved taking the test and learning what I was really like as an investor! The advice is sound, the writing is conversational, and I came away feeling like I had finally learned something which I could use to reach my goals on the stock market. Highly recommended!

1 of 1 people found the following review helpful:

5.0 out of 5 stars Best practical wisdom for investors in one volume!, May 6, 1999

By 

[e-mail] (Sacramento, CA) - See all my reviews

This review is from: The Wealth Equation (Hardcover)

An avid reader and financial planner since 1972 I can encourage new and experienced investors alike to read this book for "practical wisdom" adding excellent personal self understanding to make a portfolio and investment program really work. Reflects both research and experience of many sound and successful investment managers.