The Four Pillars of Investing, Second Edition

The classic guide to constructing a solid portfolio—without a financial advisor! Retired neurologist and master investor William J. Bernstein has seen it all throughout his career. Buying investments with borrowed money. Chasing past performance. Overestimating one's own risk tolerance. Listening to cable news. These are just a few of the many mistakes he has witnessed smart, serious investors make, to the peril of their portfolios. Add to these behavioral errors such economic factors as deflation, sudden stock declines, and soaring inflation—and investing can seem like something to be avoided at all costs. But with the right discipline and knowledge, you can build and manage an impressive portfolio. It all comes down to understanding four key pillars: ? Theory: Risk and return go hand in hand—you can't make money without risk ? History: Understand past markets to understand today's markets ? Psychology: Avoid the most common behavioral mistakes that tank portfolios ? Business: The cost of investment services can be high—unreasonably high After taking you on a deep dive into each of these topics, Bernstein walks you through the process of designing and maintaining a powerful portfolio.