- Series: Focused Investor
- Hardcover: 200 pages
- Publisher: Charter Financial Pub Network; First Edition edition (September 1, 2007)
- Language: English
- ISBN-10: 0976657422
- ISBN-13: 978-0976657422
- Product Dimensions: 6.4 x 0.8 x 9.2 inches
- Shipping Weight: 1 pounds (View shipping rates and policies)
- Average Customer Review: 32 customer reviews
- Amazon Best Sellers Rank: #493,213 in Books (See Top 100 in Books)
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Wise Investing Made Simple: Larry Swedroe's Tales to Enrich Your Future (Focused Investor) First Edition Edition
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"We remember a good story long after the facts are forgotten. Larry Swedroe tells stories that will change your beliefs-and make yourself a better investor." --Weston J. Wellington, Vice President, Dimensional Fund Advisors
"Larry Swedroe's book, Wise Investing Made Simple: Larry Swedroe's Tales to Enrich Your Future, is the best one he has yet written. In a series of stories tha tare clear and simple yet profound in their meaning, Mr. Swedroe explains how modern financial markets really work and how any investor who comes to understand this will be able to make more informed and better investment decisions. I highly recommend this book for all levels of investors-as well as their advistors." --W. Scott Simon, author of The Prudent Investor Act: A Guide to Understanding
"Like stories around the campfire, Swedroe weaves familiar concepts into lessons explaining the mystery of how and why free markets work. Swedroe will clear the smoke and mirrors that conceal the failure of active management." --Mark T. Hebner, author of Index Funds: The 12-Step Program for Active Investors
About the Author
<div>Larry Swedroe is a principal in the firm, Buckingham Asset Management. He graduated from New York University with an MBA in finance, and is the author of The Only Guide to a Winning Investment Strategy You'll Ever Need, What Wall Street Doesn't Want you to Know and four other books.</div>
Top customer reviews
They mistakenly believe that smart people, working diligently, can discover which stocks are undervalued and should be bought, and which stocks are overvalued and should be avoided. They also believe that smart people can get in and out of the stock market at the right time. These mistaken beliefs lead to the search for a strategy that will "beat the market," a search that is doomed to fail.
Swedroe sets out to change the reader's understanding of how markets really work and to provide the reader "with sufficient knowledge to begin to make more informed and more prudent investment decisions." Along the way he debunks many investment fables, including: "Great companies make great investments," "Buy what you know," "Stocks are not risky in the long run," and "Past performance is a predictor of future performance."
Wise Investing uses inventive stories in a clear, understandable and concise manner to illustrate why economic forecasts are not useful, why trying to time the market or find undervalued stocks is a loser's strategy, and why finding the next investment superstar is nearly impossible. He illustrates why overconfidence can be dangerous and how investors confuse information with exploitable knowledge.
Swedroe uses analogies from such sports as baseball, basketball, golf, and football. He also uses game theory, horse racing, and insurance examples. Without straining, he refers to astronomy, astrology, alchemy, and mythology to keep the reader interested. Finally he peppers his stories with specific historical examples, which are very convincing. Each story makes a point, and the cumulative effect is impressive.
Some of the very practical suggestions include how to interview and evaluate a stockbroker and how to evaluate an investment strategy, both before and after it is implemented.
If you already know something about investing, this will still be a useful book, because of the cumulative logic of the chapters, the engaging writing style and the memorable stories. Wise Investing will be useful to financial advisors in explaining to clients how to avoid the common pitfalls.
Wise Investing is primarily a "why-to" rather than a "how-to", in that to implement the strategy correctly you may want to read his earlier book - The Only Guide to a Winning Investment Strategy You'll Ever Need - or you may need an advisor. His last chapter covers why some people should consider using an advisor and how to find one you can trust. (Full disclosure - I am a fee-only financial advisor.)
Wise Investing is a valuable addition to anyone's library of investment books. It will be useful for all levels of investors.
I really enjoyed the "stories" approach that Larry used......and I would think most readers will be more inclined to finish this book......versus the typical dry investing books published.
I used this book to contrast and compare Larry's asset class recommendations to Rick Ferri's recommendations. Rick is another great author of many good investing books.
I was a little surprised that Larry does not like Vanguard's Total Bond fund (VBMFX) because it contains 33% Mortgage Backed Securities (MBS). Larry would recommend other Vanguard short term bond funds which do not include any MBS like the Short Term Bond Index fund (VBISX) and the Intermediate Term Bond Index fund (VBIIX).
I already knew Larry was an advocate of including commodities in the form of PCRIX in your portfolio. Rick Ferri contends that commodities should not be included in your portfolio because they lower your portfolio return.
Larry also disagrees with two other Ferri recommendations, high yield (junk) bonds like Vanguard's High Yield fund (VWEHX) and emerging market bonds like Payden's PYEMX. Larry contends the rewards of junk bonds are not worth the risk and emerging market bonds behave too much like stocks.
Larry's book does a great job of teaching the passive index approach to investing. I recommend it to anyone who wants an easy and interesting method of learning how to invest to create wealth for yourself.....and not wealth for Wall Street.
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If you're looking for another book regurgitating data on the underperformance of complex active investing, you won't find it here. In place of mind-numbing, forgettable data, Swedroe imparts his message through real life stories. These stories give us something relatable and memorable to take away from the book, and inspire us to make changes - financial changes, in this case. Each story has a valuable "moral of the tale."
Stories are also more fun to read than a bunch of data tables, and Swedroe is entertaining as he delivers his valuable advice. The moral of his tale is to build wealth for yourself rather than Wall Street.