Preface
First:
Most people feel that the subjects of personal finance, investments and generally the whole financial world are too complicated for them to understand.
NOT TRUE; NOT TRUE; NOTTRUE
This book differs from other personal finance and investing books in a number of crucial aspects.
Because in this book:
I explain why:
USING FINANCIAL MANAGERS ACTUALLY HARMS YOUR LONG TERM INVESTINGRESULTS!
I explain why:
FOLLOWING THE ADVICE OF MOST FINANCIAL ADVISORS HARMS YOUR LONG TERM INVESTINGRESULTS!
I explain why:
FOLLOWING THE CURRENT INVESTING THEORY (MODERN PORTFOLIO THEORY) HARMS YOUR LONG TERM INVESTINGRESULTS!
I explain why:
THE FAILURE TO MINIMIZE YOUR YEARLY COST OF INVESTING HARMS YOUR LONG TERM INVESTINGRESULTS!
I explain why:
EXCESSIVE DIVERSIFICATION HARMS YOUR LONG TERM INVESTINGRESULTS!
I explain why:
UNDERSTANDING RISK, INFLATION AND EXPONENTIAL GROWTH ARE NECESSARY FOR YOUR FINANCIALLITERACY!
I explain why:
IT IS IMPORTANT TO LEARN ENOUGH ABOUT PERSONAL FINANCE AND INVESTING TO BECOME YOUR OWNTEACHER!
I explain why:
YOU NEED TO BE CAREFUL WHO YOU TRUST WITH YOURMONEY!
I explain why:
YOU NEED DISCIPLINE IN YOUR SPENDINGBEHAVIOR!
I explain why:
I CONSIDER MYSELF THE PACHYDERM IN THE PARLOR OF PERSONAL FINANCE ANDINVESTING!
I explain why:
MY OPINIONS AND ADVICE REGARDING PERSONAL FINANCE AND INVESTING AREHERETICAL!
Enough of the “I explain why’s”.
Let’s move on.
In this book I present a simple and effective method for successful long term investing. Note, please, my emphasis on long term. I will explain in simple terms why I believe that the basic theory (Modern Portfolio Theory) used by most financial advisors and financial managers is flawed. I will discuss why I believe following this theory results in sub-optimal investing results. I will explain why I believe that the basic theory underpinning all of the financial advice you hear and all of the financial management you receive will actually harm your long term investing results.
There! I have set myself a high bar to clear. I have declared myself a heretic.
I have found through past experience that financial advisors a