The Informed Investor: A Hype-Free Guide to Constructing a Sound Financial Portfolio - Hardcover

Armstrong, Frank, III

Hardcover

ISBN 10: 0814406769 ISBN 13: 9780814406762

Publisher: Amacom Books, 2002

Synopsis

Most people are scared stiff by investment risk. But what most people don't know is that the biggest risk is simply investor behavior. Irrational and fearful, investors routinely chase after investment rainbows offering high returns with zero risk...or sell off stocks in a panic when the market is down...or horde their money in T-bills, which historically have just barely outpaced inflation.

The only way to eliminate such self-destructive behavior is to get hard facts on how the stock market really works. Fortunately, anyone can learn -- not just the analysts on Wall Street -- with The Informed Investor. Packed with eye-opening charts and graphs, this powerful book shows how to develop an investment strategy that yields the highest return with the lowest risk. The Informed Investor:

* Replaces "voodoo investing" methods with proven real-world strategies and groundbreaking academic research. * Provides a thorough education in financial economics. * Explains how to allocate assets to achieve specific goals. * Simplifies difficult subjects with clear language and straight-shooting advice.

About this title

About the Author:

Frank Armstrong (Coconut Grove, FL) is the founder and principal of Investor Solutions, Inc. He is a frequent contributor to CNNfn.com, and has appeared on "CNN Headline News" and "PBS Morning Business Report."

From Library Journal:

According to Armstrong, when it comes to investing in "Mother Market," there is no free lunch, and beware of the "performance fairies, voodoo priests, shamans, witch doctors, false profits and charlatans" who offer high returns but shrug their shoulders when the stock market goes south. A financial adviser and founder of Investor Solutions, Inc., Armstrong advises average investors to take responsibility for educating themselves, even when they use the help of stockbrokers. He offers some insight into how brokerage houses operate and cautions investors about reading popular money magazines and listening to what "Wall Street wants you to know." When it comes to stock selection, Armstrong recommends abandoning outmoded ideas. For example, he does not believe that timing the market and past-manager performance are criteria for making sound investments. Instead, he suggests replacing old thinking with new strategies for assessing risk tolerance, focusing more on asset allocation, and considering various types of mutual funds as a way to build a diverse portfolio. Combined with the additional resources listed, this book offers the average investor an adequate background in how to formulate a meaningful investment plan. Recommended for public libraries. Bellinda Wise, Nassau Community Coll. Lib., Garden City, NY
Copyright 2002 Cahners Business Information, Inc.

About this edition

• Publisher: Amacom Books
• Publication date: 2002
• ISBN 10: 0814406769
• ISBN 13: 9780814406762
• Binding: Hardcover
• Edition number: 1
• Number of pages: 288