The Art of Investing and Portfolio Management: A Proven 6-Step Process to Meet Your Financial Goals

by Richard Steiny and Ronald Cordes

Book Overview

back cover]The six-step program used by top institutional investors-tailored to drive any size portfolioThe Art of Investing and Portfolio Management concentrates the collected skill sets and... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0071440054
• ISBN13: 9780071440059
• Release Date: May 2004
• Publisher: McGraw-Hill Companies
• Length: 183 Pages
• Weight: 1.00 lbs.
• Dimensions: 0.8" x 6.0" x 9.3"

Customer Reviews

A Good Guide for the Beginner

Read this book if you are really unsure about investing. It's one of the best that you can find. Concise and extremely useful. It provides you with the right mentality and the right principles. Even if you have good general knowledge of various asset classes, here's one book that grounds you and reminds you of the importance to keep it real.

GOOD FIRST READ FOR THE SERIOUS INVESTOR

A little too much sell on the importance of having a team in place (the authors are investment managers), the content is nonetheless very worthwhile and what I would consider an excellent 'first read' for anyone who's serious about learning about real investment management versus the financial entertainment that's far too prevelant on the airwaves. In the interest of full disclosure: I'm a fee-only advisor and have purchased a couple cases of this book to give away. Those who want to go further should read The Management of Investment Decisionsby Donald Trone.

A plethora of useful information!

My investing guru recommended that I read THE ART OF INVESTING & PORTFOLIO MANAGEMENT by Ronald Cordes, Brian O'Toole and Richard Steiny, I made it a point to do so. And I'm glad I did . . . though a bit technical in spots, there's a lot of useful information here that makes sense if you can cut through the jargon . . . in particular, I liked what the authors called their "proven" 6-step process to meet your financial goals: Step 1: Perform financial self-analysis. Step 2: Build an efficient portfolio. Step 3: Bring a portfolio strategist on board. Step 4: Implement your plan. Step 5: Rebalance regularly. Step 6: Track your progress. But not only are these six steps listed, they are also described in detail . . . so I now have a better sense of what I need to do to get ahead . . . or if not that, to at least keep from falling behind. There are many useful tidbits of information, such as the following: Emphasize the importance of asset allocation. The world's best institutional investors recognize a fact that may surprise you: The decision about which specific stocks, bonds, or other investments you select for your portfolio has little bearing on your returns. A much more important factor is how the dollars you invest are divided up among various types of broad asset categories-such as stocks, bonds, international investments, cash, and so on. Yet, despite its importance, few investors fully grasp the concept of asset allocation. Wilshire's findings show that past performance is, in fact, an extremely poor predictor of future results. Of the managers that delivered top- quartile returns during the first 5-year period, just 21 percent managed to do the same during the second 5-year period. Amazingly, a full 50 percent of these managers posted bottom-quartile (i.e., the worst possible) returns. Yet, despite the attention that's been given to asset allocation over the years, it remains one of the most misunderstood and underused components of investing. If every investor truly understood and practiced sound asset allocation strategies, no one would invest the bulk of their retirement savings in their employer's stock, as so many workers do through their 401(k) plans. And certainly on one would make the mistake of buying a dozen different technology stocks and calling themselves well-diversified investors-a common practice during the late 1990s that caused a staggering amount of wealth to be lost in the ensuing years.

The Book I Have Been Looking For

In my 24 years working as a financial advisor I have finally found the book I have been needing for my clients. Many times they have asked for a book about the investing process and now I have it. This book covers very concisely, methodically, and completely the investing process of the investment pros. It covers the six basic steps of investing and provides the research and illustrations to back it up. Cordes, O'Toole, and Steiny provide questionairs to guide you through understanding your own investment needs along with the guidelines on what you should be looking for in not only investing but also the investment professionals you use. The authors give you not only the 'plus' side to each issue but also the 'negative.' If you are an individual investor looking for a guide to teach you how to invest I would suggest you start here. It will keep you from making the mistakes that the vast majority of investors make. If you are an investment professional, you should give this book to each of your clients before you begin working for them. It would answer many of their questions and make them an educated client. You should buy this book.