The books keep rolling in! It’s getting challenging trying to keep up with the book reading/reporting between all my other duties. However, since the readers seem to enjoy them (or maybe it’s the giveaways), I will keep doing them!
This hardcover book is about investing, portfolio creation and risk management. It’s titled “The Intelligent Portfolio – Practical Wisdom on Personal Investing from Financial Engines” written by Christopher L. Jones. The book is fairly lengthy and technical, but the beauty lies in the summary at the end of each chapter.
Who is the Author?
According to the publisher:
Christopher L. Jones is Chief Investment Officer and Executive Vice President of Investment Management for Financial Engines. Working closely with founder William F. Sharpe, Jones built and led the team of experts in finance, economics, and mathematics that developed the financial methodology for Financial Engines’ personalized investment advice and management services. Jones has led the investment management function at Financial Engines for more than a decade. He holds an MS in business technology, an MS in engineering-economic systems, and a BA in quantitative economics, all from Stanford University.
What Topics are Covered?
- Recognizing the link between risk and reward
- Leveraging the wisdom of the market
- Minimizing losses due to investment fees
- Avoiding the risks of stock picking
- Selecting funds with proper forward-looking criteria
- Understanding how to realistically fund financial goals
- Investing tax-efficiently
- The most important diversification is the split between stocks/bonds, then between domestic/international equity.
- Minimizing your investment expenses will result in a huge difference in portfolio value over the long term.
- Higher expected returns will have a higher risk associated with them. However, not all high risk investments come with higher expected returns.
- The most important factors in choosing a risk level are the tolerance for downside outcomes and the time horizon before the money is needed.
- Investing in individual stocks are an unnecessary gamble. Historically, investors do better with diversified instruments like ETF’s/index mutual funds.
I enjoyed this hardcover book as it provides a lot of insight into the value of diversified low cost index investing through facts and hard earned experience. I would say that this book is geared towards investors who are already familiar with the markets but looking to expand their market knowledge.
For the beginner investor, this book may be a little intimidating and a touch on the dry side as it is fairly technical. However, I would say that this book would provide the right start on how to create a diversified portfolio at a risk level that is right for you.
Want a Free Copy?
- Simply leave a comment and you’ll automatically be entered in the draw for a free copy.
- Please only 1 comment entry / person (please enter a valid email address).
- Only those with a North American mailing address may enter (publisher rules, sorry).
- Contest will end Thursday 5pm EST June 12, 2008 and the winner announced shortly afterwards!
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