The financial meltdown has tossed millions of Americans onto a turbulent
investment sea. The waters are more dangerous than they have been in
living memory, but by the perverse calculus of finance, they are also
more rewarding. THE INVESTOR’S MANIFESTO: Preparing for
Prosperity, Armageddon, and Everything in Between by William J.
Bernstein, author of the timeless investment classics The Intelligent
Asset Allocator and The Four Pillars of Investing, will teach
readers what they need to make it to shore.
As Bernstein explains, successful investors need four abilities: an
interest in the process; math horsepower, including an understanding of
the laws of probability and a working knowledge of statistics; a firm
grasp on financial history; and the most vital quality of all, the
emotional discipline to execute their planned strategy faithfully.
Bernstein believes that only a small percent of the population possesses
these qualities and is therefore qualified to manage their own money.
However, with the proliferation of 401(k)s, 403(b)s, and 457s, where
does this leave those who have to manage their own investments whether
they like it or not?
THE INVESTOR’S MANIFESTO provides a roadmap to millions of
individual investors who have found themselves unwillingly thrust into
the role of portfolio manager. After delving into the history of
financial disasters in order to illustrate the need to diversify risks,
Bernstein addresses the greatest enemy facing investors—themselves. He
then advises how readers can use the investment industry to execute the
devised investment strategies.
Written in a straightforward and accessible style, THE INVESTOR’S
MANIFESTO:
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Explains the relationship between risk and return
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Explores the theoretical basis of investing and designing portfolios,
drawn in large part from the financial history
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Offers insights on dealing with the emotions and attitudes that
routinely cripple investors
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Discusses how to deal with the investment industry when executing
strategies designed for anything from saving for retirement to putting
a child through college
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Addresses ways in which individual investors can construct diversified
portfolios that can blunt potentially damaging market forces
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Covers the concept of Pascal’s Wager—which enables investors to
identify and avoid worst-case scenarios
The current market maelstrom makes this the perfect time for investors
to take control of their finances. With Bernstein’s theories of
investing and designing portfolios—using his three main principles:
don’t be too greedy; diversify as widely as possible; and always be wary
of the investment industry—the future is looking brighter already.
