35 of 35 people found the following review helpful
An engaging cold shower,
This review is from: The Wall Street Self-defense Manual: A Consumer's Guide to Intelligent Investing (Paperback)
I read this engaging book in one sitting. The writing's charm makes the book's challenging ideas go down easier. Using academic research and his own reporting, the author demonstrates how the vast majority of investors will lose money by choosing an active investing approach (i.e. picking stocks, attempting to time the market, and so on). Not only will they will lose money by making bad calls, they will lose money by generating costs. A dollar wasted today can never compound into the future. This makes protecting one's money from the wealth-eating power of taxes and inflation very difficult. The author shows that, for those of us not named Warren Buffett, the answer lies in a disciplined passive investing approach--an approach that is simple on paper but runs counter to human nature. Before reading this book, I had thought of my retirement strategy as prudent. This book forced me to consider the extent to which ego has driven my choices, the unnecessary costs I am generating today and their impact over time. Eye-opening, scary, but fun, too.