The Four Pillars of Investing: Lessons for Building a Winning Portfolio

The classic guide to constructing a solid portfolio―without a financial advisor!

First  published two decades ago, The Four Pillars of Investing has been the  go-to resource for an entire generation of investors. This updated  edition of the investing classic provides the foundational knowledge you  need to avoid the most common pitfalls and build a portfolio in today’s  roller-coaster world of investing.

Retired neurologist and  master investor William J. Bernstein has seen it all throughout his  career. Buying investments with borrowed money. Chasing past  performance. Overestimating one’s own risk tolerance. Listening to cable  news. These are just a few of the many mistakes he has witnessed smart,  serious investors make, to the peril of their portfolios. Add to these  behavioral errors such economic factors as deflation, sudden stock  declines, soaring inflation, and the like―and investing can seem like  something to be avoided at all costs. But with the right discipline and  knowledge, you can build and manage an impressive portfolio. It all  comes down to understanding four key pillars:
Theory: Risk and return  go hand in hand―you can’t make money without riskHistory: Understand  past markets to understand today’s marketsPsychology: Avoid the most  common behavioral mistakes that tank portfoliosBusiness: The cost of  investment services can be high―unreasonably high

After taking  you on a deep dive into each of these topics, Bernstein walks you  through the process of designing and maintaining a powerful portfolio.

Times  have changed. Economies have changed. And markets are ever-changing.  But sound investing principles haven’t changed. Use The Four Pillars of  Investing to stay a step ahead of your investing peers and build a  portfolio to be proud of.