3 of 4 people found the following review helpful
In praise of 'The four pillars of investing',
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This review is from: The Four Pillars of Investing: Lessons for Building a Winning Portfolio (Hardcover)
I've read 20 or so books on investing and this comes in the top two. (The other is Tim Hale's Smarter Investing). Why? Too many journalists, reporters, authors, stockbrokers and mutual fund salesmen imply that they have the right hot tip, money-making fund managers or above average performance that you can join in on. Unfortunately, the statistics just don't support this, starting with the analogy that a large proportion of us can't be above average drivers and finishing with the fact that funds with above average performance for the last few years tend to fall below average. So what to do? Invest in low cost index funds and diversify. But the book is also very human, you have to sleep at night rather than worry about your investments and the book recognises that too, advocating government bonds (Gilts in the UK), corporate bonds and even tiny percentages in property funds, commodities and others. Any disadvantages? The book allows for USA taxes which aren't relevant to us in the UK.
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