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

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

by Frank Armstrong
     
 

View All Available Formats & Editions

"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 hoard their money in T-bills, which

Overview

"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 hoard 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"

Editorial Reviews

Publishers Weekly
Geared to the skittish novice investor who may have been spooked by the September 11 fallout, The Informed Investor: A Hype-Free Guide to Constructing a Sound Financial Portfolio guides readers through the basics of investing with a reassuring tone and a relatively conservative long-term strategy. Frank Armstrong III, a former contributor to CNNMoney, explains how to assess risk, choose a mutual fund and interpret the advice of financial soothsayers. He weighs the relative advantages of mutual fund alternatives (like real estate investment trusts and variable annuities) and offers specific tips for parents worried about college tuition. (Mar.) Copyright 2001 Cahners Business Information.
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.
Soundview Executive Book Summaries
If you are want better returns on your investments, want to control risk, and would like to design investment plans that can meet your goals, Frank Armstrong offers this easy-to-understand guide. In it, he explains the fundamentals of building an investment portfolio to maximize return and minimize risk. The ideas he presents offer ways to avoid skittishness, and look at long-term rather than short-term data. He helps amateur investors develop responsible investment strategies by explaining the basics of stock and bonds with plain language and charts. Copyright (c) 2002 Soundview Executive Book Summaries

Product Details

ISBN-13:
9780814472507
Publisher:
AMACOM Books
Publication date:
12/16/2003
Edition description:
REV
Pages:
320
Product dimensions:
6.00(w) x 9.00(h) x 0.68(d)
Age Range:
17 Years

Meet the Author

Frank Armstrong III (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.

Customer Reviews

Average Review:

Write a Review

and post it to your social network

     

Most Helpful Customer Reviews

See all customer reviews >