Bedrock investing principles for profiting in today’s shaky markets
If you wanted to create the next earth-shattering consumer product, Steve Jobs would be an ideal role model to follow. If you planned to become a great golfer, you might look to Arnold Palmer or Jack Nicklaus.
So, if your goals were to outperform other investors and achieve your life’s financial goals, what should you do?
Think, act and invest like the best investor out there: Warren Buffett. While you can’t invest exactly like he does, Think, Act, and Invest Like Warren Buffett provides a solid, sensible investing approach based on Buffett’s advice regarding investment strategies.
When it comes to investing, Director of Research for the BAM Alliance and CBS News blogger Larry Swedroe has pretty much seen it all—and he’s come to the conclusion that simple is better, that adopting basic investing principles always increases an investor’s chance of success and that Buffett is the perfect model for such investing.
In Think, Act, and Invest Like Warren Buffett, Swedroe provides the foundational knowledge you need to:
- Develop a financial plan to help you make rational decisions on a consistent basis
- Determine the level of risk that’s right for you and allocate your assets accordingly
- Create a strong portfolio that will weather any economic storm
- Manage your portfolio—rebalance periodically to maintain proper risk levels
The beauty of the Buffett approach is its profound simplicity: follow the basics, keep your cool, and have a sense of humor.
The market volatility of recent years has ushered in armies of economists, forecasters and other so-called experts whose job it is to explain how everything works. Somehow, they have managed to muddy the waters even more.
The truth is, investing is easier than you think—even in today’s economy. “Complex problems can have simple solutions,” Swedroe writes. Think, Act, and Invest Like Warren Buffett helps you go back to the basics—so you can leap in front of the investing pack.
Praise for Think, Act, and Invest Like Warren Buffett:
“You could not spend a more profitable hour than reading Larry Swedroe’s wise and lucid investment guide.”
—Burton Malkiel, author, A Random Walk Down Wall Street
“If you've been wondering why you've had such a hard time investing well, Playing the Winner's Game will diagnose your ills and treat them in just ninety short, delightful pages.”
—William Bernstein, author, A Splendid Exchange and The Investor’s Manifesto
“Follow the investment strategy advocated by Larry Swedroe, and free yourself to spend your time on life's treasures—like your family and friends!”
—William Reichenstein, professor, Baylor University
“As someone who teaches a college investments course, I would not have thought it possible to do what Swedroe has done in such a short concise book.”
—Edward R. Wolfe, professor of finance, Western Kentucky University
“It's amazing. Larry Swedroe managed to pen a magnificent book not only chock full of actionable advice, but one that's fun to read. Get a copy and treat yourself to a better financial future.”
—Harold Evensky, president, Evensky & Katz
“Larry Swedroe is the undisputed expert in helping investors manage portfolios the smart way. His new book, Playing the Winner’s Game, combines all facets of wealth management in an inspiring and powerful manner.”
—Bill Schultheis, author, The New Coffeehouse Investor
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About the Author
Larry E. Swedroe is a principal and the Director of Research for the BAM Alliance. He has also held executive-level positions at Prudential Home Mortgage, Citicorp, and CBS. Swedroe frequently speaks at financial conferences throughout the year and writes the blog "Wise Investing" at CBSNews.com.
Most Helpful Customer Reviews
“ Playing the Winners Game" is a terrific book. It is clearly written and supported with helpful illustrations. The investment concepts are understandable especially to an average person. Mr. Swedroe indicates his mission is to educate average individuals regarding academically based investment principles and their implementation. He feels this subject is so important that the basics of investing should be covered in our schools but it is not. He indicates that the principles are "simple, elegant, and logical." He offers a cautionary note. Implementing the principles requires discipline which is sustained by becoming an informed investor. This book alone can provide you with the information needed to obtain market returns. His other books provide additional confirmation in detail. Mr Swedroe indicates investing involves ris. He indicates academic studies imply those risks can be managed. He also explains how we can individualize those risks based upon our own unique "ability, need, and willingness to take risk." He believes that the primary reason postpone or avoid risk is based upon an " irrational belief that someone can protect us from bad things like bear markets." He suggests that avoiding media forecasters and actively managed mutual funds while investing the equity portion of a portfolio in index and passively managed funds along with periodic rebalancing offers the most likely opportunity for investing success. His book covers indicate the endorsement for these principles by a large number of finance professors. A section of the book discusses the value added for most investors of using a "fee based only" investment advisor. What can one achieve by adopting the described academic investment principles? He suggests one is likely to achieve their financial goals with the least amount of risk and acquire as a bonus the free time to pursue personally meaningful activities with loved ones.