How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn

ISBN-13: 9780470919033 / Angielski / Miękka / 2011 / 304 str.

Allan S. Roth

Opis

Straightforward strategies from a successful young investor In How a Second Grader Beats Wall Street, you'll follow the story of Kevin Roth, an eight-year-old who was schooled in simple approaches to sound investing by his father, seasoned financial planner Allan Roth, and discover exactly how simple it can be to become a successful investor. Page by page, you'll learn how to create a portfolio with the widest diversification and lowest costs; one that can move up your financial freedom by a decade and dramatically increase your spending rate during retirement. And all this can be accomplished by using some common sense techniques. Along the way, Kevin and his dad discuss fresh, new approaches to investing, and detail some tried-and-true, but lesser known approaches. They also take the time to debunk the financial myths and legends that many of us accept as true, and show you what it really takes to build long-term wealth with less risk.

• Discusses how to design a portfolio composed of a few basic building blocks that can be "tweaked" to fit your personal needs
• Addresses how you can reengineer your portfolio in order to stop needlessly paying taxes
• Reveals how you can increase returns, regardless of which direction the market goes, by picking the "low-hanging fruit" we all have in our portfolios

With just a little time and a little work, you can become a better investor. With this book as your guide, you'll discover how a simpler approach to today's markets can put you on the path to financial independence.

Spis treści

Foreword.

Acknowledgments.

Introduction: The Seeds of Financial Success.

Chapter 1 The Claw Will Take Your Money: "10 2 = 8".

Chapter 2 Own the World: "Don′t Put All of Your Eggs in One Basket".

Chapter 3 The Advantage of Having Wall Street Marketing Blinders (and Where Can I Get Some?): "I Don′t Watch Cramer; I Like SpongeBob".

Chapter 4 Adults Behaving Badly: "Don′t Act Silly When Something Is Important".

Chapter 5 Can You Beat a Second Grader′s Portfolio?: "I′m Not Going to Win All Three Spins".

Chapter 6 Beyond the Second–Grader Portfolio: "If Dad Says There′s a Better Way, I Might Try It, but I′m Not So Sure".

Chapter 7 Bonds Your Portfolio′s Shock Absorber: "Don′t Lend Money to Someone Who Won t Pay You Back".

Chapter 8 Better Than Bonds: "If the Teacher Promises You ll Be Paid Back, Then It′s Okay to Lend Randy Money".

Chapter 9 Simply Brilliant or Brilliantly Simple Building Your Portfolio: "Don′t Bet Your Lunch Money".

Chapter 10 Investors Who Love to Pay Taxes, and the IRS Who Loves Them: "Don′t Pay Taxes If You Don′t Have To".

Chapter 11 Nightmare off Wall Street The Scary Tale of Trick–or–Treat Investing: "If the Game Is Too Hard to Understand, I′m Not Playing".

Chapter 12 Increase Your Return No Matter What the Market Does: "If You Pick the Low–Hanging Fruit, You Don′t Have to Climb the Tree".

Chapter 13 Keep It Simple, Stupid (KISS): "Why Do Grownups Have to Make Things So Complicated?"

Kevin′s Postscript.

Notes.

About the Author.

Index.

O autorze

Allan S. Roth is the founder of Wealth Logic, LLC, a boutique financial planning and investment advisory firm that presently advises on $500 million in assets for 100 clients. Roth is an adjunct finance faculty member at Colorado College and teaches behavioral finance at the University of Denver′s Graduate Tax Institute. He is an expert in portfolio construction and performance benchmarking.

Blurb

Praise for HOW A SECOND GRADER BEATS WALL STREET

"Allan Roth′s How a Second Grader Beats Wall Street reminds us that the most important investment principles are actually simple truths that we lose sight of as our lives andinvestment approaches grow more complicated."
Don Phillips, Managing Director, Morningstar, Inc.

"Meet Kevin Roth: financial savant, successful money manager, and second grader. Kevin, you see, possesses several unfair advantages over the rest of us: he doesn′t read the Wall Street Journal, worry about the economy, or watch James Cramer (well, maybe he does, but only with the sound off). But he solidly understands the principles of investment management. How a Second Grader Beats Wall Street can be consumed almost as quickly and enjoyably as the chocolate milk on Kevin′s lunch tray."
William Bernstein, author of The Four Pillars of Investing and The Investor′s Manifesto

"One of the greatest gifts any author can bring to their readers is the ability to capture simplicity from complexity and convey the essence in a readable, understandable fashion. Allan Roth does that with How a Second Grader Beats Wall Street. His book will help readers realize that fads and fashion are trumped by the steady, less risky returns that come from rational diversification and a disciplined commitment to it. Everything in Roth′s book has special relevance in today′s turbulent and treacherous times."
George G. C. Parker, Dean Witter Distinguished Professor of Finance, Emeritus, Stanford Business School

"Don′t be put off by thinking the title is too cute. The great lessons of life are simple (but, as Warren Buffett advises, not easy). If you follow these important rules, successful investing is ′child′s play.′"
Charles D. Ellis, author of Winning the Loser′s Game and coauthor of The Elements of Investing

"The ′Second Grader′s Starter Portfolio′ is one of the eight great ′Lazy Portfolios′ we feature and update on Dow Jones/MarketWatch. Why? Because it′s a winner, regularly beating the S&P 500. It′s perfect for all Americans, young and young–at–heart, who are starting small and want to retire a millionaire someday."
Paul B. Farrell, JD, PhD, author of The Millionaire Meditation

"You can make investing as complicated as you want. Or you can make it simple. The beauty of Kevin Roth′s elegantly reasoned approach is not just that it′s clearer and easier to execute than most investing advice today. It′s also that, in the long run, it′s likely to put more money in your pocket."
Eric Schurenberg, former managing editor, Money magazine