An in-depth look at asset allocation in passive and index portfolios. Bernstein makes a case that having a coherent asset allocation strategy is the key to long-term success in investing. A practicing neurologist, Bernstein uses his self-taught investment knowledge and research to teach independent investors how to build diversified portfolios.Bogle, John C. (2007). The Little Book of Common Sense Investing. Hoboken, New Jersey: John Wiley & Sons.
A thorough examination of the benefits of index and passive investing written by the founder and former CEO of the Vanguard Group and creator of the world’s first index mutual fund. Bogle believes that investing is all about common sense and that owning a diversified portfolio of stock and holding it for the long-term in a winner’s game.Lowenstein, Louis (2008). The Investor’s Dilemma: How Mutual Funds are Betraying Your Trust and What to Do About It.
Based on cutting-edge research by leading corporate critic Louis Lowenstein, The Investor’s Dilemma shines a harsh light on much of what is wrong with the mutual fund industry; it also outlines a value-oriented approach to this market that will allow individual investors to achieve investment success.Malkiel, Burton G. (2011). A Random Walk Down Wall Street. New York: W. W. Norton & Company.
A Random Walk is a classic guide for the individual investor who wants insight into how markets really work. Malkiel covers the full range of investment opportunities and advances the premise that individual investors are better off buying and holding index funds than pursuing securities or actively managing mutual funds. Written for the financial layperson but bolstered by 30 years of research, A Random Walk, which is in its seventh printing, presents a thorough explanation of the benefits of passive investing.Swedroe, Larry E (1998). The Only Guide to a Winning Investment Strategy You’ll Ever Need. New York: Dutton.
Swedroe provides an easy-to-read and informative introduction to passive investing and DFA-style allocation models. He describes the crucial difference between “active” and “passive” mutual funds and explains how investors can win the investment game through long-term investments in such indexes as the S&P 500 instead of through the active buying and selling of stocks.Swedroe, Larry E (2001). What Wall Street Doesn’t Want You to Know. New York: St. Martin’s Press.
An easy-to-read introduction to passive investing. Swedroe gives the reader the “inside information” needed to understand the pitfalls of trying to pick stocks and time the market. He explains why active managers rarely add value to your portfolio over time and how index and passive investing can be advantageous.Continue Reading No Comments