About the book and its Contents:
This is another informative book about finance that states that the best way is to invest in equity index funds instead of actively managed mutual or investment trust funds.
The first chapters explain what is the meaning of Random Walk, as well as the financial manias and bubbles that transpired long ago. The second part discusses in detail the strengths and weaknesses of both technical and fundamental analysis. The Third part discusses the more modern academic theories on investing, which include the Modern Portfolio Theory and the Efficient Market Theory. The last part provides guidance for those who will take the path of 'random walkers,' and includes a chapter about the life cycle guide to investing.
Review
This book provides an excellent argument on why index funds are a better choice than the actively managed funds which may employ technical analysis, fundamental analysis, efficient markets theory, and others.
Difficulty Level = 2.5/5
This book is best read by those who have a more advanced understanding and appreciation of finance and investing knowledge.
Personal Rating = 4.5/5
Personal finance tip for today:There are pros and cons between choosing an actively managed mutual fund or UITF, and an index fund. There are endless debates over which is better than the other. But before you join in on the argument, it is best to ask first, does investing in equities fit my investment objectives in life?
This book is fro the boggleheads.
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