The Power of Passive Investing: More Wealth with Less Work

by Richard A. Ferri, John C. Bogle (Foreword by)

Overview

A practical guide to passive investing

Time and again, individual investors discover, all too late, that actively picking stocks is a loser's game. The alternative lies with index funds. This passive form of investing allows you to participate in the markets relatively cheaply while prospering all the more because the money saved on investment expenses stays in your pocket.

In his latest book, investment expert Richard Ferri shows you how easy and accessible index investing is. Along the way, he highlights how successful you can be by using this passive approach to allocate funds to stocks, bonds, and other prudent asset classes.

• Addresses the advantages of index funds over portfolios that are actively managed
• Offers insights on index-based funds that provide exposure to designated broad markets and don't make bets on individual securities
• Ferri is also author of the Wiley title: The ETF Book and co-author of The Bogleheads' Guide to Retirement Planning

If you're looking for a productive investment approach that won't take all of your time to implement, then The Power of Passive Investing is the book you need to read.

Product Details

ISBN-13:	9780470592205
Publisher:	Wiley
Publication date:	12/07/2010
Pages:	288
Product dimensions:	6.20(w) x 9.10(h) x 1.00(d)

About the Author

RICHARD A. FERRI is the founder of the investment firm Portfolio Solutions® and a Forbes writer. Portfolio Solutions manages nearly $1 billion in separate accounts for high-net-worth individuals, families, non-profit organizations, and corporate pension plans. Ferri has written or cowritten six investment books, including the Wiley titles The ETF Book and The Bogleheads' Guide to Retirement Planning. He earned a bachelor of science in business administration from the University of Rhode Island and a master of science in finance from Walsh College. Ferri is also a CFA Charterholder as designated by the CFA Institute, a global association of investment professionals. For more information, visit www.RickFerri.com and www.PortfolioSolutions.com.

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Table of Contents

Foreword vii

Preface ix

Acknowledgments xix

Part I The Active Versus Passive Debate 1

Chapter 1 Framing the Debate 3

Chapter 2 Early Performance Studies 15

Chapter 3 The Birth of Index Funds 33

Chapter 4 Advances in Fund Analysis 41

Chapter 5 Passive Choices Expand 61

Chapter 6 Portfolios of Mutual Funds 79

Part II Chasing Alpha and Changing Behavior 93

Chapter 7 The Futility of Seeking Alpha 95

Chapter 8 Active and Passive Asset Allocation 117

Chapter 9 Changing Investor Behavior 133

Part III The Case For Passive Investing 155

Chapter 10 The Passive Management Process 157

Chapter 11 The Passive Case for Individual Investors 175

Chapter 12 The Passive Case for Charities and Personal Trusts 193

Chapter 13 The Passive Case for Pension Funds 211

Chapter 14 The Passive Case for Advisors 221

Glossary 233

Notes 245

About the Author 253

Index 255